Correlation Between Addex Therapeutics and Alaunos Therapeutics

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

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

Diversification Opportunities for Addex Therapeutics and Alaunos Therapeutics

0.27

Correlation Coefficient

Addex Therapeutics  Alaunos Therapeutics

Modest diversification

The 3 months correlation between Addex and Alaunos is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Addex Therapeutics and Alaunos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaunos Therapeutics and Addex Therapeutics 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 Addex Therapeutics are associated (or correlated) with Alaunos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaunos Therapeutics has no effect on the direction of Addex Therapeutics i.e., Addex Therapeutics and Alaunos Therapeutics go up and down completely randomly.

Pair Corralation between Addex Therapeutics and Alaunos Therapeutics

Given the investment horizon of 90 days Addex Therapeutics is expected to generate 0.74 times more return on investment than Alaunos Therapeutics. However, Addex Therapeutics is 1.35 times less risky than Alaunos Therapeutics. It trades about 0.05 of its potential returns per unit of risk. Alaunos Therapeutics is currently generating about 0.02 per unit of risk. If you would invest  578.00  in Addex Therapeutics on August 22, 2025 and sell it today you would earn a total of  317.00  from holding Addex Therapeutics or generate 54.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Addex Therapeutics  vs.  Alaunos Therapeutics

Addex Therapeutics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Addex Therapeutics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Addex Therapeutics displayed solid returns over the last few months and may actually be approaching a breakup point.

Alaunos Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alaunos Therapeutics are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Alaunos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Addex Therapeutics and Alaunos Therapeutics

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

The idea behind Addex Therapeutics and Alaunos 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.