Correlation Between Altimmune and Annexon
Can any of the company-specific risk be diversified away by investing in both Altimmune and Annexon 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 Altimmune and Annexon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altimmune and Annexon, you can compare the effects of market volatilities on Altimmune and Annexon 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 Altimmune with a short position of Annexon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altimmune and Annexon.
Diversification Opportunities for Altimmune and Annexon
Poor diversification
The 3 months correlation between Altimmune and Annexon is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Altimmune and Annexon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexon and Altimmune 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 Altimmune are associated (or correlated) with Annexon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexon has no effect on the direction of Altimmune i.e., Altimmune and Annexon go up and down completely randomly.
Pair Corralation between Altimmune and Annexon
Considering the 90-day investment horizon Altimmune is expected to generate 1.2 times less return on investment than Annexon. But when comparing it to its historical volatility, Altimmune is 1.74 times less risky than Annexon. It trades about 0.1 of its potential returns per unit of risk. Annexon is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 235.00 in Annexon on August 18, 2025 and sell it today you would earn a total of 36.00 from holding Annexon or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altimmune vs. Annexon
Performance |
| Timeline |
| Altimmune |
| Annexon |
Altimmune and Annexon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altimmune and Annexon
The main advantage of trading using opposite Altimmune and Annexon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altimmune position performs unexpectedly, Annexon 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 Annexon will offset losses from the drop in Annexon's long position.| Altimmune vs. DBV Technologies | Altimmune vs. Annexon | Altimmune vs. Frequency Therapeutics | Altimmune vs. enGene Holdings Common |
| Annexon vs. DBV Technologies | Annexon vs. Larimar Therapeutics | Annexon vs. Altimmune | Annexon vs. Frequency Therapeutics |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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