Correlation Between FIXX Old and BeiGene

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

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

Diversification Opportunities for FIXX Old and BeiGene

-0.01

Correlation Coefficient

FIXX Old  BeiGene

Good diversification

The 3 months correlation between FIXX and BeiGene is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding FIXX Old and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and FIXX Old 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 FIXX Old are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of FIXX Old i.e., FIXX Old and BeiGene go up and down completely randomly.

Pair Corralation between FIXX Old and BeiGene

If you would invest  17,650  in BeiGene on October 21, 2024 and sell it today you would earn a total of  821.00  from holding BeiGene or generate 4.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	12.5%
Values	Daily Returns

FIXX Old  vs.  BeiGene

FIXX Old

Risk-Adjusted Performance

0 of 100

Very Weak

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

BeiGene

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BeiGene has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with FIXX Old and BeiGene

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

The idea behind FIXX Old and BeiGene 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.