Correlation Between Molecular Partners and Basilea Pharmaceutica
Can any of the company-specific risk be diversified away by investing in both Molecular Partners and Basilea Pharmaceutica at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Molecular Partners and Basilea Pharmaceutica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molecular Partners AG and Basilea Pharmaceutica AG, you can compare the effects of market volatilities on Molecular Partners and Basilea Pharmaceutica and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Molecular Partners with a short position of Basilea Pharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molecular Partners and Basilea Pharmaceutica.
Diversification Opportunities for Molecular Partners and Basilea Pharmaceutica
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molecular and Basilea is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Molecular Partners AG and Basilea Pharmaceutica AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Basilea Pharmaceutica and Molecular Partners is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Molecular Partners AG are associated (or correlated) with Basilea Pharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Basilea Pharmaceutica has no effect on the direction of Molecular Partners i.e., Molecular Partners and Basilea Pharmaceutica go up and down completely randomly.
Pair Corralation between Molecular Partners and Basilea Pharmaceutica
Assuming the 90 days trading horizon Molecular Partners AG is expected to generate 4.1 times more return on investment than Basilea Pharmaceutica. However, Molecular Partners is 4.1 times more volatile than Basilea Pharmaceutica AG. It trades about -0.06 of its potential returns per unit of risk. Basilea Pharmaceutica AG is currently generating about -0.31 per unit of risk. If you would invest 579.00 in Molecular Partners AG on August 29, 2024 and sell it today you would lose (59.00) from holding Molecular Partners AG or give up 10.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molecular Partners AG vs. Basilea Pharmaceutica AG
Performance |
| Timeline |
| Molecular Partners |
| Basilea Pharmaceutica |
Molecular Partners and Basilea Pharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molecular Partners and Basilea Pharmaceutica
The main advantage of trading using opposite Molecular Partners and Basilea Pharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molecular Partners position performs unexpectedly, Basilea Pharmaceutica can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Basilea Pharmaceutica will offset losses from the drop in Basilea Pharmaceutica's long position.| Molecular Partners vs. Idorsia | Molecular Partners vs. Basilea Pharmaceutica AG | Molecular Partners vs. Santhera Pharmaceuticals Holding | Molecular Partners vs. Evolva Holding SA |
| Basilea Pharmaceutica vs. Santhera Pharmaceuticals Holding | Basilea Pharmaceutica vs. Idorsia | Basilea Pharmaceutica vs. Molecular Partners AG | Basilea Pharmaceutica vs. Evolva Holding SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |