Correlation Between Moolec Science and Avantor

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

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

Diversification Opportunities for Moolec Science and Avantor

-0.33

Correlation Coefficient

Moolec Science  Avantor

Very good diversification

The 3 months correlation between Moolec and Avantor is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Moolec Science SA and Avantor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantor and Moolec Science 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 Moolec Science SA are associated (or correlated) with Avantor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantor has no effect on the direction of Moolec Science i.e., Moolec Science and Avantor go up and down completely randomly.

Pair Corralation between Moolec Science and Avantor

Assuming the 90 days horizon Moolec Science SA is expected to generate 6.03 times more return on investment than Avantor. However, Moolec Science is 6.03 times more volatile than Avantor. It trades about 0.11 of its potential returns per unit of risk. Avantor is currently generating about -0.05 per unit of risk. If you would invest  1.50  in Moolec Science SA on May 11, 2025 and sell it today you would earn a total of  0.39  from holding Moolec Science SA or generate 26.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	82.26%
Values	Daily Returns

Moolec Science SA  vs.  Avantor

Moolec Science SA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Moolec Science SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, Moolec Science showed solid returns over the last few months and may actually be approaching a breakup point.

Avantor

Risk-Adjusted Performance

Weakest

Over the last 90 days Avantor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest inconsistent performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Moolec Science and Avantor

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

The idea behind Moolec Science SA and Avantor 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.