Correlation Between Camden National and Eledon Pharmaceuticals

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

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

Diversification Opportunities for Camden National and Eledon Pharmaceuticals

0.49

Correlation Coefficient

Camden National  Eledon Pharmaceuticals

Very weak diversification

The 3 months correlation between Camden and Eledon is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Camden National and Eledon Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eledon Pharmaceuticals and Camden National 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 Camden National are associated (or correlated) with Eledon Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eledon Pharmaceuticals has no effect on the direction of Camden National i.e., Camden National and Eledon Pharmaceuticals go up and down completely randomly.

Pair Corralation between Camden National and Eledon Pharmaceuticals

Considering the 90-day investment horizon Camden National is expected to under-perform the Eledon Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Camden National is 2.05 times less risky than Eledon Pharmaceuticals. The stock trades about -0.03 of its potential returns per unit of risk. The Eledon Pharmaceuticals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  300.00  in Eledon Pharmaceuticals on May 7, 2025 and sell it today you would earn a total of  25.00  from holding Eledon Pharmaceuticals or generate 8.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Camden National  vs.  Eledon Pharmaceuticals

Camden National

Risk-Adjusted Performance

Weakest

Over the last 90 days Camden National has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Camden National is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Eledon Pharmaceuticals

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Eledon Pharmaceuticals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Eledon Pharmaceuticals displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Camden National and Eledon Pharmaceuticals

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

The idea behind Camden National and Eledon Pharmaceuticals 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.