Correlation Between Fennec Pharmaceuticals and AGE Old

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

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

Diversification Opportunities for Fennec Pharmaceuticals and AGE Old

0.0

Correlation Coefficient

Fennec Pharmaceuticals  AGE Old

Pay attention - limited upside

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

Pair Corralation between Fennec Pharmaceuticals and AGE Old

If you would invest  622.00  in Fennec Pharmaceuticals on December 27, 2024 and sell it today you would earn a total of  25.00  from holding Fennec Pharmaceuticals or generate 4.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Fennec Pharmaceuticals  vs.  AGE Old

Fennec Pharmaceuticals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fennec Pharmaceuticals are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Fennec Pharmaceuticals may actually be approaching a critical reversion point that can send shares even higher in April 2025.

AGE Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGE Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, AGE Old is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Fennec Pharmaceuticals and AGE Old

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

The idea behind Fennec Pharmaceuticals and AGE Old 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.