Correlation Between Equillium and Daxor

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

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

Diversification Opportunities for Equillium and Daxor

-0.61

Correlation Coefficient

Equillium  Daxor

Excellent diversification

The 3 months correlation between Equillium and Daxor is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and Daxor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daxor and Equillium 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 Equillium are associated (or correlated) with Daxor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daxor has no effect on the direction of Equillium i.e., Equillium and Daxor go up and down completely randomly.

Pair Corralation between Equillium and Daxor

Allowing for the 90-day total investment horizon Equillium is expected to under-perform the Daxor. In addition to that, Equillium is 3.53 times more volatile than Daxor. It trades about -0.08 of its total potential returns per unit of risk. Daxor is currently generating about 0.05 per unit of volatility. If you would invest  763.00  in Daxor on December 28, 2024 and sell it today you would earn a total of  43.00  from holding Daxor or generate 5.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Equillium  vs.  Daxor

Equillium

Risk-Adjusted Performance

Very Weak

Over the last 90 days Equillium has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Daxor

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Daxor are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Daxor may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Equillium and Daxor

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

The idea behind Equillium and Daxor 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.