Correlation Between Biomx and Annexon
Can any of the company-specific risk be diversified away by investing in both Biomx and Annexon 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 Biomx and Annexon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomx Inc and Annexon, you can compare the effects of market volatilities on Biomx and Annexon 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 Biomx with a short position of Annexon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomx and Annexon.
Diversification Opportunities for Biomx and Annexon
Significant diversification
The 3 months correlation between Biomx and Annexon is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Biomx Inc and Annexon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexon and Biomx 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 Biomx Inc are associated (or correlated) with Annexon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexon has no effect on the direction of Biomx i.e., Biomx and Annexon go up and down completely randomly.
Pair Corralation between Biomx and Annexon
Given the investment horizon of 90 days Biomx Inc is expected to generate 2.07 times more return on investment than Annexon. However, Biomx is 2.07 times more volatile than Annexon. It trades about -0.22 of its potential returns per unit of risk. Annexon is currently generating about -0.49 per unit of risk. If you would invest 87.00 in Biomx Inc on August 29, 2024 and sell it today you would lose (27.00) from holding Biomx Inc or give up 31.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomx Inc vs. Annexon
Performance |
| Timeline |
| Biomx Inc |
| Annexon |
Biomx and Annexon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomx and Annexon
The main advantage of trading using opposite Biomx and Annexon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomx position performs unexpectedly, Annexon 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 Annexon will offset losses from the drop in Annexon's long position.| Biomx vs. ZyVersa Therapeutics | Biomx vs. Immix Biopharma | Biomx vs. Cns Pharmaceuticals | Biomx vs. Sonnet Biotherapeutics Holdings |
| Annexon vs. Immix Biopharma | Annexon vs. Cns Pharmaceuticals | Annexon vs. Hepion Pharmaceuticals | Annexon vs. Day One Biopharmaceuticals |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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