Correlation Between GLYC Old and Annexon

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

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

Diversification Opportunities for GLYC Old and Annexon

0.13

Correlation Coefficient

GLYC Old  Annexon

Average diversification

The 3 months correlation between GLYC and Annexon is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding GLYC Old and Annexon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexon and GLYC Old 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 GLYC Old are associated (or correlated) with Annexon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexon has no effect on the direction of GLYC Old i.e., GLYC Old and Annexon go up and down completely randomly.

Pair Corralation between GLYC Old and Annexon

Given the investment horizon of 90 days GLYC Old is expected to generate 37.39 times more return on investment than Annexon. However, GLYC Old is 37.39 times more volatile than Annexon. It trades about 0.16 of its potential returns per unit of risk. Annexon is currently generating about 0.12 per unit of risk. If you would invest  27.00  in GLYC Old on May 5, 2025 and sell it today you would lose (11.00) from holding GLYC Old or give up 40.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	47.62%
Values	Daily Returns

GLYC Old  vs.  Annexon

GLYC Old

Risk-Adjusted Performance

Good

Over the last 90 days GLYC Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather uncertain basic indicators, GLYC Old exhibited solid returns over the last few months and may actually be approaching a breakup point.

Annexon

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Annexon are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Annexon showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GLYC Old and Annexon

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

The idea behind GLYC Old and Annexon 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.