Correlation Between Avax Techs and Moderna

Can any of the company-specific risk be diversified away by investing in both Avax Techs and Moderna 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 Avax Techs and Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Avax Techs and Moderna, you can compare the effects of market volatilities on Avax Techs and Moderna 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 Avax Techs with a short position of Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avax Techs and Moderna.

Diversification Opportunities for Avax Techs and Moderna

0.0

Correlation Coefficient

Avax Techs  Moderna

Pay attention - limited upside

The 3 months correlation between Avax and Moderna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Avax Techs and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and Avax Techs 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 Avax Techs are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of Avax Techs i.e., Avax Techs and Moderna go up and down completely randomly.

Pair Corralation between Avax Techs and Moderna

If you would invest  0.00  in Avax Techs on November 28, 2024 and sell it today you would earn a total of  0.00  from holding Avax Techs or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.08%
Values	Daily Returns

Avax Techs  vs.  Moderna

Avax Techs

Risk-Adjusted Performance

Very Weak

Over the last 90 days Avax Techs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Avax Techs is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Moderna

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moderna has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Avax Techs and Moderna

The main advantage of trading using opposite Avax Techs and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avax Techs position performs unexpectedly, Moderna 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 Moderna will offset losses from the drop in Moderna's long position.

The idea behind Avax Techs and Moderna pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.