Correlation Between Navidea Biopharmaceutica and Apexigen
Can any of the company-specific risk be diversified away by investing in both Navidea Biopharmaceutica and Apexigen 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 Navidea Biopharmaceutica and Apexigen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navidea Biopharmaceuticals and Apexigen, you can compare the effects of market volatilities on Navidea Biopharmaceutica and Apexigen 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 Navidea Biopharmaceutica with a short position of Apexigen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navidea Biopharmaceutica and Apexigen.
Diversification Opportunities for Navidea Biopharmaceutica and Apexigen
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Navidea and Apexigen is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Navidea Biopharmaceuticals and Apexigen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apexigen and Navidea Biopharmaceutica 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 Navidea Biopharmaceuticals are associated (or correlated) with Apexigen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apexigen has no effect on the direction of Navidea Biopharmaceutica i.e., Navidea Biopharmaceutica and Apexigen go up and down completely randomly.
Pair Corralation between Navidea Biopharmaceutica and Apexigen
Given the investment horizon of 90 days Navidea Biopharmaceuticals is expected to generate 1.82 times more return on investment than Apexigen. However, Navidea Biopharmaceutica is 1.82 times more volatile than Apexigen. It trades about 0.03 of its potential returns per unit of risk. Apexigen is currently generating about 0.02 per unit of risk. If you would invest 10.00 in Navidea Biopharmaceuticals on August 28, 2024 and sell it today you would lose (0.04) from holding Navidea Biopharmaceuticals or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Navidea Biopharmaceuticals vs. Apexigen
Performance |
| Timeline |
| Navidea Biopharmaceutica |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Apexigen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Navidea Biopharmaceutica and Apexigen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navidea Biopharmaceutica and Apexigen
The main advantage of trading using opposite Navidea Biopharmaceutica and Apexigen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navidea Biopharmaceutica position performs unexpectedly, Apexigen 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 Apexigen will offset losses from the drop in Apexigen's long position.| Navidea Biopharmaceutica vs. NovaBay Pharmaceuticals | Navidea Biopharmaceutica vs. Cyclacel Pharmaceuticals | Navidea Biopharmaceutica vs. Tenax Therapeutics |
| Apexigen vs. Leap Therapeutics | Apexigen vs. Zura Bio Limited | Apexigen vs. X4 Pharmaceuticals | Apexigen vs. Phio Pharmaceuticals Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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