Correlation Between ProQR Therapeutics and Annexon
Can any of the company-specific risk be diversified away by investing in both ProQR Therapeutics 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 ProQR Therapeutics and Annexon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProQR Therapeutics BV and Annexon, you can compare the effects of market volatilities on ProQR Therapeutics 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 ProQR Therapeutics with a short position of Annexon. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProQR Therapeutics and Annexon.
Diversification Opportunities for ProQR Therapeutics and Annexon
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ProQR and Annexon is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ProQR Therapeutics BV and Annexon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexon and ProQR Therapeutics 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 ProQR Therapeutics BV 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 ProQR Therapeutics i.e., ProQR Therapeutics and Annexon go up and down completely randomly.
Pair Corralation between ProQR Therapeutics and Annexon
Given the investment horizon of 90 days ProQR Therapeutics BV is expected to generate 1.08 times more return on investment than Annexon. However, ProQR Therapeutics is 1.08 times more volatile than Annexon. It trades about 0.07 of its potential returns per unit of risk. Annexon is currently generating about -0.5 per unit of risk. If you would invest 331.00 in ProQR Therapeutics BV on August 29, 2024 and sell it today you would earn a total of 13.00 from holding ProQR Therapeutics BV or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProQR Therapeutics BV vs. Annexon
Performance |
| Timeline |
| ProQR Therapeutics |
| Annexon |
ProQR Therapeutics and Annexon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProQR Therapeutics and Annexon
The main advantage of trading using opposite ProQR Therapeutics and Annexon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProQR Therapeutics 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.| ProQR Therapeutics vs. Annexon | ProQR Therapeutics vs. Arrowhead Pharmaceuticals | ProQR Therapeutics vs. Day One Biopharmaceuticals | ProQR Therapeutics vs. Terns Pharmaceuticals |
| Annexon vs. Eliem Therapeutics | Annexon vs. Scpharmaceuticals | Annexon vs. Milestone Pharmaceuticals | Annexon vs. Seres Therapeutics |
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 Stocks Directory module to find actively traded stocks across global markets.
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