Correlation Between Zura Bio and Apexigen
Can any of the company-specific risk be diversified away by investing in both Zura Bio 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 Zura Bio and Apexigen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zura Bio Limited and Apexigen, you can compare the effects of market volatilities on Zura Bio 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 Zura Bio with a short position of Apexigen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zura Bio and Apexigen.
Diversification Opportunities for Zura Bio and Apexigen
Significant diversification
The 3 months correlation between Zura and Apexigen is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Zura Bio Limited and Apexigen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apexigen and Zura Bio 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 Zura Bio Limited 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 Zura Bio i.e., Zura Bio and Apexigen go up and down completely randomly.
Pair Corralation between Zura Bio and Apexigen
Given the investment horizon of 90 days Zura Bio Limited is expected to under-perform the Apexigen. In addition to that, Zura Bio is 1.33 times more volatile than Apexigen. It trades about -0.02 of its total potential returns per unit of risk. Apexigen is currently generating about 0.02 per unit of volatility. If you would invest 43.00 in Apexigen on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Apexigen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.24% |
| Values | Daily Returns |
Zura Bio Limited vs. Apexigen
Performance |
| Timeline |
| Zura Bio Limited |
| Apexigen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zura Bio and Apexigen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zura Bio and Apexigen
The main advantage of trading using opposite Zura Bio and Apexigen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zura Bio 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.| Zura Bio vs. Eliem Therapeutics | Zura Bio vs. HCW Biologics | Zura Bio vs. Scpharmaceuticals | Zura Bio vs. Milestone Pharmaceuticals |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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