Correlation Between Addex Therapeutics and Klingelnberg

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

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

Diversification Opportunities for Addex Therapeutics and Klingelnberg

0.35

Correlation Coefficient

Addex Therapeutics  Klingelnberg

Weak diversification

The 3 months correlation between Addex and Klingelnberg is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Addex Therapeutics and Klingelnberg AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klingelnberg AG 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 Klingelnberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klingelnberg AG has no effect on the direction of Addex Therapeutics i.e., Addex Therapeutics and Klingelnberg go up and down completely randomly.

Pair Corralation between Addex Therapeutics and Klingelnberg

Assuming the 90 days trading horizon Addex Therapeutics is expected to generate 437.0 times less return on investment than Klingelnberg. In addition to that, Addex Therapeutics is 1.37 times more volatile than Klingelnberg AG. It trades about 0.0 of its total potential returns per unit of risk. Klingelnberg AG is currently generating about 0.12 per unit of volatility. If you would invest  1,140  in Klingelnberg AG on April 25, 2025 and sell it today you would earn a total of  180.00  from holding Klingelnberg AG or generate 15.79% return on investment over 90 days.

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

Addex Therapeutics  vs.  Klingelnberg AG

Addex Therapeutics

Risk-Adjusted Performance

Modest

Over the last 90 days Addex Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Klingelnberg AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Klingelnberg AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Klingelnberg showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Addex Therapeutics and Klingelnberg

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

The idea behind Addex Therapeutics and Klingelnberg AG 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 Directory module to find actively traded commodities issued by global exchanges.