Correlation Between Soligenix and Aceragen

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

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

Diversification Opportunities for Soligenix and Aceragen

0.24

Correlation Coefficient

Soligenix  Aceragen

Modest diversification

The 3 months correlation between Soligenix and Aceragen is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Soligenix and Aceragen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aceragen and Soligenix 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 Soligenix are associated (or correlated) with Aceragen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aceragen has no effect on the direction of Soligenix i.e., Soligenix and Aceragen go up and down completely randomly.

Pair Corralation between Soligenix and Aceragen

If you would invest  343.00  in Soligenix on September 12, 2024 and sell it today you would earn a total of  4.00  from holding Soligenix or generate 1.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Soligenix  vs.  Aceragen

Soligenix

Risk-Adjusted Performance

2 of 100

Weak

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

Aceragen

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Soligenix and Aceragen

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

The idea behind Soligenix and Aceragen 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.