Correlation Between Fennec Pharmaceuticals and Qiagen NV

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

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

Diversification Opportunities for Fennec Pharmaceuticals and Qiagen NV

-0.74

Correlation Coefficient

Fennec Pharmaceuticals  Qiagen NV

Pay attention - limited upside

The 3 months correlation between Fennec and Qiagen is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fennec Pharmaceuticals and Qiagen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiagen NV 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 Qiagen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiagen NV has no effect on the direction of Fennec Pharmaceuticals i.e., Fennec Pharmaceuticals and Qiagen NV go up and down completely randomly.

Pair Corralation between Fennec Pharmaceuticals and Qiagen NV

Given the investment horizon of 90 days Fennec Pharmaceuticals is expected to generate 1.81 times more return on investment than Qiagen NV. However, Fennec Pharmaceuticals is 1.81 times more volatile than Qiagen NV. It trades about 0.05 of its potential returns per unit of risk. Qiagen NV is currently generating about -0.14 per unit of risk. If you would invest  621.00  in Fennec Pharmaceuticals on December 21, 2024 and sell it today you would earn a total of  41.00  from holding Fennec Pharmaceuticals or generate 6.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Fennec Pharmaceuticals  vs.  Qiagen NV

Fennec Pharmaceuticals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fennec Pharmaceuticals are ranked lower than 4 (%) 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.

Qiagen NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Qiagen NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Fennec Pharmaceuticals and Qiagen NV

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

The idea behind Fennec Pharmaceuticals and Qiagen NV 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..