Correlation Between Amexdrug and Revive Therapeutics

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

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

Diversification Opportunities for Amexdrug and Revive Therapeutics

0.0

Correlation Coefficient

Amexdrug  Revive Therapeutics

Pay attention - limited upside

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

Pair Corralation between Amexdrug and Revive Therapeutics

If you would invest  0.20  in Amexdrug on October 6, 2024 and sell it today you would earn a total of  0.00  from holding Amexdrug or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Amexdrug  vs.  Revive Therapeutics

Amexdrug

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amexdrug has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Amexdrug is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Revive Therapeutics

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Revive Therapeutics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Revive Therapeutics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amexdrug and Revive Therapeutics

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

The idea behind Amexdrug and Revive Therapeutics 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.