Correlation Between BioLine RX and Enlivex Therapeutics
Can any of the company-specific risk be diversified away by investing in both BioLine RX and Enlivex 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 BioLine RX and Enlivex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLine RX and Enlivex Therapeutics, you can compare the effects of market volatilities on BioLine RX and Enlivex 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 BioLine RX with a short position of Enlivex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLine RX and Enlivex Therapeutics.
Diversification Opportunities for BioLine RX and Enlivex Therapeutics
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BioLine and Enlivex is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding BioLine RX and Enlivex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlivex Therapeutics and BioLine RX 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 BioLine RX are associated (or correlated) with Enlivex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlivex Therapeutics has no effect on the direction of BioLine RX i.e., BioLine RX and Enlivex Therapeutics go up and down completely randomly.
Pair Corralation between BioLine RX and Enlivex Therapeutics
Assuming the 90 days trading horizon BioLine RX is expected to under-perform the Enlivex Therapeutics. In addition to that, BioLine RX is 2.5 times more volatile than Enlivex Therapeutics. It trades about -0.17 of its total potential returns per unit of risk. Enlivex Therapeutics is currently generating about -0.32 per unit of volatility. If you would invest 51,360 in Enlivex Therapeutics on September 3, 2024 and sell it today you would lose (9,850) from holding Enlivex Therapeutics or give up 19.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioLine RX vs. Enlivex Therapeutics
Performance |
| Timeline |
| BioLine RX |
| Enlivex Therapeutics |
BioLine RX and Enlivex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioLine RX and Enlivex Therapeutics
The main advantage of trading using opposite BioLine RX and Enlivex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLine RX position performs unexpectedly, Enlivex 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 Enlivex Therapeutics will offset losses from the drop in Enlivex Therapeutics' long position.| BioLine RX vs. Evogene | BioLine RX vs. Enlivex Therapeutics | BioLine RX vs. Kamada | BioLine RX vs. Compugen |
| Enlivex Therapeutics vs. Purple Biotech | Enlivex Therapeutics vs. BioLine RX | Enlivex Therapeutics vs. Clal Biotechnology Industries | Enlivex Therapeutics vs. Evogene |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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