Correlation Between Aldeyra Therapeu and Moderna

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Aldeyra Therapeu and Moderna 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 Aldeyra Therapeu and Moderna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldeyra Therapeu and Moderna, you can compare the effects of market volatilities on Aldeyra Therapeu and Moderna 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 Aldeyra Therapeu with a short position of Moderna. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldeyra Therapeu and Moderna.

Diversification Opportunities for Aldeyra Therapeu and Moderna

0.76
  Correlation Coefficient

Poor diversification

The 3 months correlation between Aldeyra and Moderna is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aldeyra Therapeu and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and Aldeyra Therapeu 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 Aldeyra Therapeu are associated (or correlated) with Moderna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderna has no effect on the direction of Aldeyra Therapeu i.e., Aldeyra Therapeu and Moderna go up and down completely randomly.

Pair Corralation between Aldeyra Therapeu and Moderna

Given the investment horizon of 90 days Aldeyra Therapeu is expected to generate 1.17 times more return on investment than Moderna. However, Aldeyra Therapeu is 1.17 times more volatile than Moderna. It trades about 0.04 of its potential returns per unit of risk. Moderna is currently generating about 0.02 per unit of risk. If you would invest  366.00  in Aldeyra Therapeu on April 6, 2022 and sell it today you would earn a total of  37.00  from holding Aldeyra Therapeu or generate 10.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Aldeyra Therapeu  vs.  Moderna

 Performance (%) 
      Timeline 
Aldeyra Therapeu 
Aldeyra Performance
0 of 100
Over the last 90 days Aldeyra Therapeu has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Aldeyra Price Channel

Moderna 
Moderna Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Moderna are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Moderna may actually be approaching a critical reversion point that can send shares even higher in August 2022.

Moderna Price Channel

Aldeyra Therapeu and Moderna Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Aldeyra Therapeu and Moderna

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

Aldeyra Therapeu

Pair trading matchups for Aldeyra Therapeu

The idea behind Aldeyra Therapeu and Moderna 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.

Moderna

Pair trading matchups for Moderna

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
CEO Directory
Screen CEOs from public companies around the world
Go