Correlation Between Clene and Nuvation Bio
Can any of the company-specific risk be diversified away by investing in both Clene and Nuvation Bio 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 Clene and Nuvation Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clene Inc and Nuvation Bio, you can compare the effects of market volatilities on Clene and Nuvation Bio 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 Clene with a short position of Nuvation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clene and Nuvation Bio.
Diversification Opportunities for Clene and Nuvation Bio
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Clene and Nuvation is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Clene Inc and Nuvation Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvation Bio and Clene 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 Clene Inc are associated (or correlated) with Nuvation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvation Bio has no effect on the direction of Clene i.e., Clene and Nuvation Bio go up and down completely randomly.
Pair Corralation between Clene and Nuvation Bio
Given the investment horizon of 90 days Clene is expected to generate 31.56 times less return on investment than Nuvation Bio. In addition to that, Clene is 1.33 times more volatile than Nuvation Bio. It trades about 0.0 of its total potential returns per unit of risk. Nuvation Bio is currently generating about 0.08 per unit of volatility. If you would invest 132.00 in Nuvation Bio on September 1, 2024 and sell it today you would earn a total of 158.00 from holding Nuvation Bio or generate 119.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clene Inc vs. Nuvation Bio
Performance |
| Timeline |
| Clene Inc |
| Nuvation Bio |
Clene and Nuvation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clene and Nuvation Bio
The main advantage of trading using opposite Clene and Nuvation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clene position performs unexpectedly, Nuvation Bio 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 Nuvation Bio will offset losses from the drop in Nuvation Bio's long position.| Clene vs. MediciNova | Clene vs. Eliem Therapeutics | Clene vs. Molecular Partners AG | Clene vs. Champions Oncology |
| Nuvation Bio vs. Tff Pharmaceuticals | Nuvation Bio vs. Eliem Therapeutics | Nuvation Bio vs. Inhibrx | Nuvation Bio vs. Enliven Therapeutics |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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