Correlation Between Aslan Pharmaceuticals and Autolus Therapeutics

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

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

Diversification Opportunities for Aslan Pharmaceuticals and Autolus Therapeutics

0.7

Correlation Coefficient

Aslan Pharmaceuticals  Autolus Therapeutics

Poor diversification

The 3 months correlation between Aslan and Autolus is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Aslan Pharmaceuticals and Autolus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autolus Therapeutics 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 are associated (or correlated) with Autolus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autolus Therapeutics has no effect on the direction of Aslan Pharmaceuticals i.e., Aslan Pharmaceuticals and Autolus Therapeutics go up and down completely randomly.

Pair Corralation between Aslan Pharmaceuticals and Autolus Therapeutics

If you would invest  60.00  in Aslan Pharmaceuticals on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Aslan Pharmaceuticals or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Aslan Pharmaceuticals  vs.  Autolus Therapeutics

Aslan Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aslan Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Aslan Pharmaceuticals is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Autolus Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Autolus 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 basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Aslan Pharmaceuticals and Autolus Therapeutics

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

The idea behind Aslan Pharmaceuticals and Autolus Therapeutics 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.