Correlation Between Axsome Therapeutics and Intra Cellular

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

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

Diversification Opportunities for Axsome Therapeutics and Intra Cellular

0.01

Correlation Coefficient

Axsome Therapeutics  Intra Cellular

Significant diversification

The 3 months correlation between Axsome and Intra is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Axsome Therapeutics and Intra Cellular Therapies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intra Cellular Therapies and Axsome 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 Axsome Therapeutics are associated (or correlated) with Intra Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intra Cellular Therapies has no effect on the direction of Axsome Therapeutics i.e., Axsome Therapeutics and Intra Cellular go up and down completely randomly.

Pair Corralation between Axsome Therapeutics and Intra Cellular

If you would invest  10,835  in Axsome Therapeutics on May 20, 2025 and sell it today you would earn a total of  87.00  from holding Axsome Therapeutics or generate 0.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Axsome Therapeutics  vs.  Intra Cellular Therapies

Axsome Therapeutics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Axsome Therapeutics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Axsome Therapeutics is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Intra Cellular Therapies

Risk-Adjusted Performance

Weakest

Over the last 90 days Intra Cellular Therapies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Intra Cellular is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Axsome Therapeutics and Intra Cellular

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

The idea behind Axsome Therapeutics and Intra Cellular Therapies 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.