Correlation Between Fennec Pharmaceuticals and NervGen Pharma
Can any of the company-specific risk be diversified away by investing in both Fennec Pharmaceuticals and NervGen Pharma 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 Fennec Pharmaceuticals and NervGen Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fennec Pharmaceuticals and NervGen Pharma Corp, you can compare the effects of market volatilities on Fennec Pharmaceuticals and NervGen Pharma 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 Fennec Pharmaceuticals with a short position of NervGen Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fennec Pharmaceuticals and NervGen Pharma.
Diversification Opportunities for Fennec Pharmaceuticals and NervGen Pharma
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fennec and NervGen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fennec Pharmaceuticals and NervGen Pharma Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NervGen Pharma Corp and Fennec 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 Fennec Pharmaceuticals are associated (or correlated) with NervGen Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NervGen Pharma Corp has no effect on the direction of Fennec Pharmaceuticals i.e., Fennec Pharmaceuticals and NervGen Pharma go up and down completely randomly.
Pair Corralation between Fennec Pharmaceuticals and NervGen Pharma
Assuming the 90 days trading horizon Fennec Pharmaceuticals is expected to generate 3.89 times less return on investment than NervGen Pharma. But when comparing it to its historical volatility, Fennec Pharmaceuticals is 1.44 times less risky than NervGen Pharma. It trades about 0.02 of its potential returns per unit of risk. NervGen Pharma Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 190.00 in NervGen Pharma Corp on August 17, 2025 and sell it today you would earn a total of 143.00 from holding NervGen Pharma Corp or generate 75.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fennec Pharmaceuticals vs. NervGen Pharma Corp
Performance |
| Timeline |
| Fennec Pharmaceuticals |
| NervGen Pharma Corp |
Fennec Pharmaceuticals and NervGen Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fennec Pharmaceuticals and NervGen Pharma
The main advantage of trading using opposite Fennec Pharmaceuticals and NervGen Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fennec Pharmaceuticals position performs unexpectedly, NervGen Pharma 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 NervGen Pharma will offset losses from the drop in NervGen Pharma's long position.| Fennec Pharmaceuticals vs. Eupraxia Pharmaceuticals | Fennec Pharmaceuticals vs. NervGen Pharma Corp | Fennec Pharmaceuticals vs. Canopy Growth Corp | Fennec Pharmaceuticals vs. TerrAscend Corp |
| NervGen Pharma vs. Eupraxia Pharmaceuticals | NervGen Pharma vs. Profound Medical Corp | NervGen Pharma vs. Fennec Pharmaceuticals | NervGen Pharma vs. Helix BioPharma Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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