Correlation Between Addex Therapeutics and Evolva Holding

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

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

Diversification Opportunities for Addex Therapeutics and Evolva Holding

-0.27

Correlation Coefficient

Addex Therapeutics  Evolva Holding

Very good diversification

The 3 months correlation between Addex and Evolva is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Addex Therapeutics and Evolva Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolva Holding SA and Addex Therapeutics 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 Addex Therapeutics are associated (or correlated) with Evolva Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolva Holding SA has no effect on the direction of Addex Therapeutics i.e., Addex Therapeutics and Evolva Holding go up and down completely randomly.

Pair Corralation between Addex Therapeutics and Evolva Holding

Assuming the 90 days trading horizon Addex Therapeutics is expected to generate 0.64 times more return on investment than Evolva Holding. However, Addex Therapeutics is 1.57 times less risky than Evolva Holding. It trades about 0.1 of its potential returns per unit of risk. Evolva Holding SA is currently generating about 0.01 per unit of risk. If you would invest  5.02  in Addex Therapeutics on April 22, 2025 and sell it today you would earn a total of  0.98  from holding Addex Therapeutics or generate 19.52% return on investment over 90 days.

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

Addex Therapeutics  vs.  Evolva Holding SA

Addex Therapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Addex Therapeutics are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Addex Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Evolva Holding SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evolva Holding SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Evolva Holding 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 Addex Therapeutics and Evolva Holding

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

The idea behind Addex Therapeutics and Evolva Holding SA 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.