Correlation Between Annexon and Pulmatrix
Can any of the company-specific risk be diversified away by investing in both Annexon and Pulmatrix 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 Annexon and Pulmatrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Annexon and Pulmatrix, you can compare the effects of market volatilities on Annexon and Pulmatrix 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 Annexon with a short position of Pulmatrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Annexon and Pulmatrix.
Diversification Opportunities for Annexon and Pulmatrix
Excellent diversification
The 3 months correlation between Annexon and Pulmatrix is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Annexon and Pulmatrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulmatrix and Annexon 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 Annexon are associated (or correlated) with Pulmatrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulmatrix has no effect on the direction of Annexon i.e., Annexon and Pulmatrix go up and down completely randomly.
Pair Corralation between Annexon and Pulmatrix
Given the investment horizon of 90 days Annexon is expected to under-perform the Pulmatrix. But the stock apears to be less risky and, when comparing its historical volatility, Annexon is 1.34 times less risky than Pulmatrix. The stock trades about -0.24 of its potential returns per unit of risk. The Pulmatrix is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 686.00 in Pulmatrix on December 30, 2024 and sell it today you would earn a total of 33.00 from holding Pulmatrix or generate 4.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Annexon vs. Pulmatrix
Performance |
Timeline |
Annexon |
Pulmatrix |
Annexon and Pulmatrix Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Annexon and Pulmatrix
The main advantage of trading using opposite Annexon and Pulmatrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Annexon position performs unexpectedly, Pulmatrix 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 Pulmatrix will offset losses from the drop in Pulmatrix's long position.Annexon vs. Immix Biopharma | Annexon vs. Cns Pharmaceuticals | Annexon vs. Hepion Pharmaceuticals | Annexon vs. Day One Biopharmaceuticals |
Pulmatrix vs. Capricor Therapeutics | Pulmatrix vs. Akari Therapeutics PLC | Pulmatrix vs. Soleno Therapeutics | Pulmatrix vs. Moleculin Biotech |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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