Correlation Between WuXi Biologics and Alexion Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both WuXi Biologics and Alexion Pharmaceuticals 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 WuXi Biologics and Alexion Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WuXi Biologics and Alexion Pharmaceuticals, you can compare the effects of market volatilities on WuXi Biologics and Alexion Pharmaceuticals 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 WuXi Biologics with a short position of Alexion Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of WuXi Biologics and Alexion Pharmaceuticals.
Diversification Opportunities for WuXi Biologics and Alexion Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WuXi and Alexion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WuXi Biologics and Alexion Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexion Pharmaceuticals and WuXi Biologics 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 WuXi Biologics are associated (or correlated) with Alexion Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexion Pharmaceuticals has no effect on the direction of WuXi Biologics i.e., WuXi Biologics and Alexion Pharmaceuticals go up and down completely randomly.
Pair Corralation between WuXi Biologics and Alexion Pharmaceuticals
If you would invest 372.00 in WuXi Biologics on September 3, 2024 and sell it today you would earn a total of 4.00 from holding WuXi Biologics or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
WuXi Biologics vs. Alexion Pharmaceuticals
Performance |
| Timeline |
| WuXi Biologics |
| Alexion Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WuXi Biologics and Alexion Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WuXi Biologics and Alexion Pharmaceuticals
The main advantage of trading using opposite WuXi Biologics and Alexion Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WuXi Biologics position performs unexpectedly, Alexion Pharmaceuticals 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 Alexion Pharmaceuticals will offset losses from the drop in Alexion Pharmaceuticals' long position.| WuXi Biologics vs. Inhibikase Therapeutics | WuXi Biologics vs. Corcept Therapeutics Incorporated | WuXi Biologics vs. Cardio Diagnostics Holdings | WuXi Biologics vs. Revolution Medicines |
| Alexion Pharmaceuticals vs. Tyson Foods | Alexion Pharmaceuticals vs. Procter Gamble | Alexion Pharmaceuticals vs. FitLife Brands, Common | Alexion Pharmaceuticals vs. Sable Offshore 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |