Correlation Between Abeona Therapeutics and HITHINK ROYALFLUSH

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Can any of the company-specific risk be diversified away by investing in both Abeona Therapeutics and HITHINK ROYALFLUSH 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 Abeona Therapeutics and HITHINK ROYALFLUSH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abeona Therapeutics and HITHINK ROYALFLUSH, you can compare the effects of market volatilities on Abeona Therapeutics and HITHINK ROYALFLUSH 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 Abeona Therapeutics with a short position of HITHINK ROYALFLUSH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abeona Therapeutics and HITHINK ROYALFLUSH.

Diversification Opportunities for Abeona Therapeutics and HITHINK ROYALFLUSH

0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between Abeona and HITHINK is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Abeona Therapeutics and HITHINK ROYALFLUSH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HITHINK ROYALFLUSH and Abeona Therapeutics 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 Abeona Therapeutics are associated (or correlated) with HITHINK ROYALFLUSH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HITHINK ROYALFLUSH has no effect on the direction of Abeona Therapeutics i.e., Abeona Therapeutics and HITHINK ROYALFLUSH go up and down completely randomly.

Pair Corralation between Abeona Therapeutics and HITHINK ROYALFLUSH

Given the investment horizon of 90 days Abeona Therapeutics is expected to under-perform the HITHINK ROYALFLUSH. In addition to that, Abeona Therapeutics is 1.81 times more volatile than HITHINK ROYALFLUSH. It trades about -0.04 of its total potential returns per unit of risk. HITHINK ROYALFLUSH is currently generating about -0.04 per unit of volatility. If you would invest  16,213  in HITHINK ROYALFLUSH on June 27, 2022 and sell it today you would lose (8,391)  from holding HITHINK ROYALFLUSH or give up 51.75% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy78.51%
ValuesDaily Returns

Abeona Therapeutics  vs.  HITHINK ROYALFLUSH

 Performance (%) 
       Timeline  
Abeona Therapeutics 
Abeona Performance
0 of 100
Over the last 90 days Abeona Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in October 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Abeona Price Channel

HITHINK ROYALFLUSH 
HITHINK Performance
0 of 100
Over the last 90 days HITHINK ROYALFLUSH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

HITHINK Price Channel

Abeona Therapeutics and HITHINK ROYALFLUSH Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Abeona Therapeutics and HITHINK ROYALFLUSH

The main advantage of trading using opposite Abeona Therapeutics and HITHINK ROYALFLUSH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abeona Therapeutics position performs unexpectedly, HITHINK ROYALFLUSH 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 HITHINK ROYALFLUSH will offset losses from the drop in HITHINK ROYALFLUSH's long position.
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The idea behind Abeona Therapeutics and HITHINK ROYALFLUSH 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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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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