Correlation Between Athenex and Vext Science

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

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

Diversification Opportunities for Athenex and Vext Science

0.82

Correlation Coefficient

Athenex  Vext Science

Very poor diversification

The 3 months correlation between Athenex and Vext is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Athenex and Vext Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vext Science and Athenex 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 Athenex are associated (or correlated) with Vext Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vext Science has no effect on the direction of Athenex i.e., Athenex and Vext Science go up and down completely randomly.

Pair Corralation between Athenex and Vext Science

If you would invest  0.22  in Athenex on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Athenex or generate 0.0% return on investment over 90 days.

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

Athenex  vs.  Vext Science

Athenex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Athenex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Athenex is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Vext Science

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vext Science 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 nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Athenex and Vext Science

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

The idea behind Athenex and Vext Science 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..