Correlation Between Neximmune and Surrozen

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

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

Diversification Opportunities for Neximmune and Surrozen

-0.06

Correlation Coefficient

Neximmune  Surrozen

Good diversification

The 3 months correlation between Neximmune and Surrozen is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Neximmune and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen and Neximmune 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 Neximmune are associated (or correlated) with Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Neximmune i.e., Neximmune and Surrozen go up and down completely randomly.

Pair Corralation between Neximmune and Surrozen

If you would invest  1,062  in Surrozen on August 31, 2024 and sell it today you would lose (40.00) from holding Surrozen or give up 3.77% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Neximmune  vs.  Surrozen

Neximmune

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neximmune has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Neximmune is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Surrozen

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Surrozen are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Surrozen may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Neximmune and Surrozen

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

The idea behind Neximmune and Surrozen 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.