Correlation Between Biofrontera Warrants and Innate Pharma
Can any of the company-specific risk be diversified away by investing in both Biofrontera Warrants and Innate Pharma 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 Biofrontera Warrants and Innate Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biofrontera Warrants and Innate Pharma, you can compare the effects of market volatilities on Biofrontera Warrants and Innate Pharma 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 Biofrontera Warrants with a short position of Innate Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofrontera Warrants and Innate Pharma.
Diversification Opportunities for Biofrontera Warrants and Innate Pharma
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biofrontera and Innate is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Biofrontera Warrants and Innate Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innate Pharma and Biofrontera Warrants 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 Biofrontera Warrants are associated (or correlated) with Innate Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innate Pharma has no effect on the direction of Biofrontera Warrants i.e., Biofrontera Warrants and Innate Pharma go up and down completely randomly.
Pair Corralation between Biofrontera Warrants and Innate Pharma
Assuming the 90 days horizon Biofrontera Warrants is expected to generate 4.38 times more return on investment than Innate Pharma. However, Biofrontera Warrants is 4.38 times more volatile than Innate Pharma. It trades about 0.11 of its potential returns per unit of risk. Innate Pharma is currently generating about 0.06 per unit of risk. If you would invest 9.37 in Biofrontera Warrants on November 30, 2024 and sell it today you would earn a total of 0.62 from holding Biofrontera Warrants or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.54% |
| Values | Daily Returns |
Biofrontera Warrants vs. Innate Pharma
Performance |
| Timeline |
| Biofrontera Warrants |
| Innate Pharma |
Biofrontera Warrants and Innate Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biofrontera Warrants and Innate Pharma
The main advantage of trading using opposite Biofrontera Warrants and Innate Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofrontera Warrants position performs unexpectedly, Innate Pharma 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 Innate Pharma will offset losses from the drop in Innate Pharma's long position.| Biofrontera Warrants vs. Biofrontera | Biofrontera Warrants vs. Pasithea Therapeutics Corp | Biofrontera Warrants vs. Inspira Technologies Oxy | Biofrontera Warrants vs. Bluejay Diagnostics |
| Innate Pharma vs. HCW Biologics | Innate Pharma vs. Inhibrx | Innate Pharma vs. Anebulo Pharmaceuticals | Innate Pharma vs. Shattuck Labs |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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