Correlation Between Harvard Apparatus and Eupraxia Pharmaceuticals

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

By analyzing existing cross correlation between Harvard Apparatus Regenerative and Eupraxia Pharmaceuticals Common, you can compare the effects of market volatilities on Harvard Apparatus and Eupraxia Pharmaceuticals 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 Harvard Apparatus with a short position of Eupraxia Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvard Apparatus and Eupraxia Pharmaceuticals.

Diversification Opportunities for Harvard Apparatus and Eupraxia Pharmaceuticals

-0.6

Correlation Coefficient

Harvard Apparatus  Eupraxia Pharmaceuticals

Excellent diversification

The 3 months correlation between Harvard and Eupraxia is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Harvard Apparatus Regenerative and Eupraxia Pharmaceuticals Commo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eupraxia Pharmaceuticals and Harvard Apparatus 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 Harvard Apparatus Regenerative are associated (or correlated) with Eupraxia Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eupraxia Pharmaceuticals has no effect on the direction of Harvard Apparatus i.e., Harvard Apparatus and Eupraxia Pharmaceuticals go up and down completely randomly.

Pair Corralation between Harvard Apparatus and Eupraxia Pharmaceuticals

If you would invest  260.00  in Eupraxia Pharmaceuticals Common on September 2, 2024 and sell it today you would earn a total of  75.00  from holding Eupraxia Pharmaceuticals Common or generate 28.85% return on investment over 90 days.

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

Harvard Apparatus Regenerative  vs.  Eupraxia Pharmaceuticals Commo

Harvard Apparatus

Risk-Adjusted Performance

0 of 100

Very Weak

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

Eupraxia Pharmaceuticals

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eupraxia Pharmaceuticals Common are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Eupraxia Pharmaceuticals showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Harvard Apparatus and Eupraxia Pharmaceuticals

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

The idea behind Harvard Apparatus Regenerative and Eupraxia Pharmaceuticals Common 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 the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.