Correlation Between Aslan Pharmaceuticals and BioatlaInc

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

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

Diversification Opportunities for Aslan Pharmaceuticals and BioatlaInc

-0.04

Correlation Coefficient

Aslan Pharmaceuticals  BioatlaInc

Good diversification

The 3 months correlation between Aslan and BioatlaInc is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Aslan Pharmaceuticals Ltd and BioatlaInc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioatlaInc and Aslan 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 Aslan Pharmaceuticals Ltd are associated (or correlated) with BioatlaInc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioatlaInc has no effect on the direction of Aslan Pharmaceuticals i.e., Aslan Pharmaceuticals and BioatlaInc go up and down completely randomly.

Pair Corralation between Aslan Pharmaceuticals and BioatlaInc

If you would invest  233.00  in BioatlaInc on January 24, 2024 and sell it today you would lose (15.00) from holding BioatlaInc or give up 6.44% of portfolio value over 90 days.

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

Aslan Pharmaceuticals Ltd  vs.  BioatlaInc

Aslan Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Aslan Pharmaceuticals Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak essential indicators, Aslan Pharmaceuticals displayed solid returns over the last few months and may actually be approaching a breakup point.

BioatlaInc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BioatlaInc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, BioatlaInc sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aslan Pharmaceuticals and BioatlaInc

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

The idea behind Aslan Pharmaceuticals Ltd and BioatlaInc 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.