Correlation Between Kiora Pharmaceuticals and Apexigen

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

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

Diversification Opportunities for Kiora Pharmaceuticals and Apexigen

0.0

Correlation Coefficient

Kiora Pharmaceuticals  Apexigen

Pay attention - limited upside

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

Pair Corralation between Kiora Pharmaceuticals and Apexigen

If you would invest  326.00  in Kiora Pharmaceuticals on November 29, 2024 and sell it today you would earn a total of  12.00  from holding Kiora Pharmaceuticals or generate 3.68% return on investment over 90 days.

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

Kiora Pharmaceuticals  vs.  Apexigen

Kiora Pharmaceuticals

Risk-Adjusted Performance

Insignificant

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

Apexigen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apexigen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Apexigen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Kiora Pharmaceuticals and Apexigen

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

The idea behind Kiora Pharmaceuticals and Apexigen 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.