Correlation Between Evolva Holding and Chimeric Therapeutics

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

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

Diversification Opportunities for Evolva Holding and Chimeric Therapeutics

-1.0

Correlation Coefficient

Evolva Holding  Chimeric Therapeutics

Pay attention - limited upside

The 3 months correlation between Evolva and Chimeric is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Evolva Holding SA and Chimeric Therapeutics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chimeric Therapeutics and Evolva Holding 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 Evolva Holding SA are associated (or correlated) with Chimeric Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chimeric Therapeutics has no effect on the direction of Evolva Holding i.e., Evolva Holding and Chimeric Therapeutics go up and down completely randomly.

Pair Corralation between Evolva Holding and Chimeric Therapeutics

Assuming the 90 days horizon Evolva Holding SA is expected to under-perform the Chimeric Therapeutics. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolva Holding SA is 2.22 times less risky than Chimeric Therapeutics. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Chimeric Therapeutics Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1.25  in Chimeric Therapeutics Limited on July 4, 2025 and sell it today you would lose (1.15) from holding Chimeric Therapeutics Limited or give up 92.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Strong
Accuracy	93.6%
Values	Daily Returns

Evolva Holding SA  vs.  Chimeric Therapeutics Limited

Evolva Holding SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Evolva Holding SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Evolva Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Chimeric Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Chimeric Therapeutics Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Chimeric Therapeutics is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Evolva Holding and Chimeric Therapeutics

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

The idea behind Evolva Holding SA and Chimeric Therapeutics Limited 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.