Correlation Between Evelo Biosciences and Molecular Partners

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

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

Diversification Opportunities for Evelo Biosciences and Molecular Partners

0.0

Correlation Coefficient

Evelo Biosciences  Molecular Partners

Pay attention - limited upside

The 3 months correlation between Evelo and Molecular is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Evelo Biosciences and Molecular Partners AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molecular Partners and Evelo Biosciences 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 Evelo Biosciences are associated (or correlated) with Molecular Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molecular Partners has no effect on the direction of Evelo Biosciences i.e., Evelo Biosciences and Molecular Partners go up and down completely randomly.

Pair Corralation between Evelo Biosciences and Molecular Partners

If you would invest (100.00) in Evelo Biosciences on May 6, 2025 and sell it today you would earn a total of  100.00  from holding Evelo Biosciences or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Evelo Biosciences  vs.  Molecular Partners AG

Evelo Biosciences

Risk-Adjusted Performance

Very Weak

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

Molecular Partners

Risk-Adjusted Performance

Very Weak

Over the last 90 days Molecular Partners AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Evelo Biosciences and Molecular Partners

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

The idea behind Evelo Biosciences and Molecular Partners AG 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.

Check out your portfolio center.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.