Correlation Between Medexus Pharmaceuticals and Willow Biosciences

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

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

Diversification Opportunities for Medexus Pharmaceuticals and Willow Biosciences

-0.26

Correlation Coefficient

Medexus Pharmaceuticals  Willow Biosciences

Very good diversification

The 3 months correlation between Medexus and Willow is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Medexus Pharmaceuticals and Willow Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willow Biosciences and Medexus 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 Medexus Pharmaceuticals are associated (or correlated) with Willow Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willow Biosciences has no effect on the direction of Medexus Pharmaceuticals i.e., Medexus Pharmaceuticals and Willow Biosciences go up and down completely randomly.

Pair Corralation between Medexus Pharmaceuticals and Willow Biosciences

Assuming the 90 days trading horizon Medexus Pharmaceuticals is expected to generate 0.55 times more return on investment than Willow Biosciences. However, Medexus Pharmaceuticals is 1.83 times less risky than Willow Biosciences. It trades about 0.01 of its potential returns per unit of risk. Willow Biosciences is currently generating about -0.02 per unit of risk. If you would invest  281.00  in Medexus Pharmaceuticals on July 18, 2025 and sell it today you would lose (2.00) from holding Medexus Pharmaceuticals or give up 0.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	65.57%
Values	Daily Returns

Medexus Pharmaceuticals  vs.  Willow Biosciences

Medexus Pharmaceuticals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Medexus Pharmaceuticals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Medexus Pharmaceuticals is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Willow Biosciences

Risk-Adjusted Performance

Weakest

Over the last 90 days Willow Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Medexus Pharmaceuticals and Willow Biosciences

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

The idea behind Medexus Pharmaceuticals and Willow Biosciences 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.