Correlation Between NLS Pharmaceutics and Addex Therapeutics

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

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

Diversification Opportunities for NLS Pharmaceutics and Addex Therapeutics

-0.27

Correlation Coefficient

NLS Pharmaceutics  Addex Therapeutics

Very good diversification

The 3 months correlation between NLS and Addex is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding NLS Pharmaceutics AG and Addex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addex Therapeutics and NLS Pharmaceutics 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 NLS Pharmaceutics 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 NLS Pharmaceutics i.e., NLS Pharmaceutics and Addex Therapeutics go up and down completely randomly.

Pair Corralation between NLS Pharmaceutics and Addex Therapeutics

Given the investment horizon of 90 days NLS Pharmaceutics AG is expected to under-perform the Addex Therapeutics. In addition to that, NLS Pharmaceutics is 1.07 times more volatile than Addex Therapeutics. It trades about -0.19 of its total potential returns per unit of risk. Addex Therapeutics is currently generating about 0.05 per unit of volatility. If you would invest  800.00  in Addex Therapeutics on August 12, 2025 and sell it today you would earn a total of  50.00  from holding Addex Therapeutics or generate 6.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	89.23%
Values	Daily Returns

NLS Pharmaceutics AG  vs.  Addex Therapeutics

NLS Pharmaceutics

Risk-Adjusted Performance

Weakest

Over the last 90 days NLS Pharmaceutics AG has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Addex Therapeutics

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Addex Therapeutics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Addex Therapeutics displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NLS Pharmaceutics and Addex Therapeutics

The main advantage of trading using opposite NLS Pharmaceutics and Addex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NLS Pharmaceutics 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 NLS Pharmaceutics 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.