Correlation Between Anavex Lf and Moderna

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

Diversification Opportunities for Anavex Lf and Moderna

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Anavex and Moderna is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anavex Lf SC and Moderna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderna and Anavex Lf 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 Anavex Lf SC 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 Anavex Lf i.e., Anavex Lf and Moderna go up and down completely randomly.

Pair Corralation between Anavex Lf and Moderna

Given the investment horizon of 90 days Anavex Lf SC is expected to generate 1.13 times more return on investment than Moderna. However, Anavex Lf is 1.13 times more volatile than Moderna. It trades about 0.24 of its potential returns per unit of risk. Moderna is currently generating about 0.1 per unit of risk. If you would invest  826.00  in Anavex Lf SC on April 6, 2022 and sell it today you would earn a total of  204.00  from holding Anavex Lf SC or generate 24.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Anavex Lf SC  vs.  Moderna

 Performance (%) 
      Timeline 
Anavex Lf SC 
Anavex Performance
0 of 100
Over the last 90 days Anavex Lf SC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest conflicting performance, the Stock's basic indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the company stakeholders.

Structure and Payout Changes

Last Split Factor
1:4
Last Split Date
2015-10-07

Anavex Price Channel

Moderna 
Moderna Performance
0 of 100
Over the last 90 days Moderna has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Moderna is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Moderna Price Channel

Anavex Lf and Moderna Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Anavex Lf and Moderna

The main advantage of trading using opposite Anavex Lf and Moderna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anavex Lf 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.
The idea behind Anavex Lf SC 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.
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 Bond Directory module to find actively traded corporate debentures issued by US companies.

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