Correlation Between Alexion Pharmaceuticals and Stem
Can any of the company-specific risk be diversified away by investing in both Alexion Pharmaceuticals and Stem 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 Alexion Pharmaceuticals and Stem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alexion Pharmaceuticals and Stem Inc, you can compare the effects of market volatilities on Alexion Pharmaceuticals and Stem 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 Alexion Pharmaceuticals with a short position of Stem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alexion Pharmaceuticals and Stem.
Diversification Opportunities for Alexion Pharmaceuticals and Stem
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alexion and Stem is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alexion Pharmaceuticals and Stem Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stem Inc and Alexion 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 Alexion Pharmaceuticals are associated (or correlated) with Stem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stem Inc has no effect on the direction of Alexion Pharmaceuticals i.e., Alexion Pharmaceuticals and Stem go up and down completely randomly.
Pair Corralation between Alexion Pharmaceuticals and Stem
If you would invest (100.00) in Alexion Pharmaceuticals on January 17, 2024 and sell it today you would earn a total of 100.00 from holding Alexion Pharmaceuticals or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Alexion Pharmaceuticals vs. Stem Inc
Performance |
| Timeline |
| Alexion Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stem Inc |
Alexion Pharmaceuticals and Stem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alexion Pharmaceuticals and Stem
The main advantage of trading using opposite Alexion Pharmaceuticals and Stem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alexion Pharmaceuticals position performs unexpectedly, Stem 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 Stem will offset losses from the drop in Stem's long position.| Alexion Pharmaceuticals vs. Sun Country Airlines | Alexion Pharmaceuticals vs. Alto Ingredients | Alexion Pharmaceuticals vs. Apogee Enterprises | Alexion Pharmaceuticals vs. US GoldMining Common |
| Stem vs. Palo Alto Networks | Stem vs. Crowdstrike Holdings | Stem vs. Cloudflare | Stem vs. Palantir TechnologiesInc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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