Correlation Between Molecular Partners and Addex Therapeutics

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

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

Diversification Opportunities for Molecular Partners and Addex Therapeutics

-0.43

Correlation Coefficient

Molecular Partners  Addex Therapeutics

Very good diversification

The 3 months correlation between Molecular and Addex is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Molecular Partners AG and Addex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addex Therapeutics and Molecular Partners 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 Molecular Partners AG are associated (or correlated) with Addex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addex Therapeutics has no effect on the direction of Molecular Partners i.e., Molecular Partners and Addex Therapeutics go up and down completely randomly.

Pair Corralation between Molecular Partners and Addex Therapeutics

Assuming the 90 days trading horizon Molecular Partners AG is expected to under-perform the Addex Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Molecular Partners AG is 1.01 times less risky than Addex Therapeutics. The stock trades about -0.03 of its potential returns per unit of risk. The Addex Therapeutics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  5.90  in Addex Therapeutics on May 2, 2025 and sell it today you would earn a total of  0.00  from holding Addex Therapeutics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Molecular Partners AG  vs.  Addex Therapeutics

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 abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Addex Therapeutics

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Addex Therapeutics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Addex Therapeutics is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Molecular Partners and Addex Therapeutics

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

The idea behind Molecular Partners AG and Addex Therapeutics 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.