Correlation Between Eledon Pharmaceuticals and Scisparc

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

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

Diversification Opportunities for Eledon Pharmaceuticals and Scisparc

0.58

Correlation Coefficient

Eledon Pharmaceuticals  Scisparc

Very weak diversification

The 3 months correlation between Eledon and Scisparc is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Eledon Pharmaceuticals and Scisparc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scisparc and Eledon 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 Eledon Pharmaceuticals are associated (or correlated) with Scisparc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scisparc has no effect on the direction of Eledon Pharmaceuticals i.e., Eledon Pharmaceuticals and Scisparc go up and down completely randomly.

Pair Corralation between Eledon Pharmaceuticals and Scisparc

Given the investment horizon of 90 days Eledon Pharmaceuticals is expected to generate 1.13 times more return on investment than Scisparc. However, Eledon Pharmaceuticals is 1.13 times more volatile than Scisparc. It trades about 0.0 of its potential returns per unit of risk. Scisparc is currently generating about -0.1 per unit of risk. If you would invest  290.00  in Eledon Pharmaceuticals on May 13, 2025 and sell it today you would lose (19.00) from holding Eledon Pharmaceuticals or give up 6.55% of portfolio value over 90 days.

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

Eledon Pharmaceuticals  vs.  Scisparc

Eledon Pharmaceuticals

Risk-Adjusted Performance

Weakest

Over the last 90 days Eledon Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Eledon Pharmaceuticals is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Scisparc

Risk-Adjusted Performance

Weakest

Over the last 90 days Scisparc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Eledon Pharmaceuticals and Scisparc

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

The idea behind Eledon Pharmaceuticals and Scisparc 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.