Correlation Between Soligenix and Addex Therapeutics
Can any of the company-specific risk be diversified away by investing in both Soligenix and Addex Therapeutics 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 Soligenix and Addex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soligenix and Addex Therapeutics, you can compare the effects of market volatilities on Soligenix and Addex Therapeutics 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 Soligenix with a short position of Addex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soligenix and Addex Therapeutics.
Diversification Opportunities for Soligenix and Addex Therapeutics
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Soligenix and Addex is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Soligenix and Addex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addex Therapeutics and Soligenix 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 Soligenix are associated (or correlated) with Addex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addex Therapeutics has no effect on the direction of Soligenix i.e., Soligenix and Addex Therapeutics go up and down completely randomly.
Pair Corralation between Soligenix and Addex Therapeutics
Given the investment horizon of 90 days Soligenix is expected to under-perform the Addex Therapeutics. In addition to that, Soligenix is 1.11 times more volatile than Addex Therapeutics. It trades about -0.08 of its total potential returns per unit of risk. Addex Therapeutics is currently generating about 0.04 per unit of volatility. If you would invest 763.00 in Addex Therapeutics on October 23, 2024 and sell it today you would earn a total of 6.00 from holding Addex Therapeutics or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soligenix vs. Addex Therapeutics
Performance |
| Timeline |
| Soligenix |
| Addex Therapeutics |
Soligenix and Addex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soligenix and Addex Therapeutics
The main advantage of trading using opposite Soligenix and Addex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soligenix position performs unexpectedly, Addex Therapeutics 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 Addex Therapeutics will offset losses from the drop in Addex Therapeutics' long position.| Soligenix vs. Zura Bio Limited | Soligenix vs. Phio Pharmaceuticals Corp | Soligenix vs. Immix Biopharma | Soligenix vs. Addex Therapeutics |
| Addex Therapeutics vs. Innate Pharma | Addex Therapeutics vs. Aptorum Group Ltd | Addex Therapeutics vs. Dyadic International | Addex Therapeutics vs. Soligenix |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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