Correlation Between Clene and NextCure
Can any of the company-specific risk be diversified away by investing in both Clene and NextCure 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 NextCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clene Inc and NextCure, you can compare the effects of market volatilities on Clene and NextCure 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 NextCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clene and NextCure.
Diversification Opportunities for Clene and NextCure
Very good diversification
The 3 months correlation between Clene and NextCure is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Clene Inc and NextCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCure 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 NextCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextCure has no effect on the direction of Clene i.e., Clene and NextCure go up and down completely randomly.
Pair Corralation between Clene and NextCure
Given the investment horizon of 90 days Clene Inc is expected to generate 0.91 times more return on investment than NextCure. However, Clene Inc is 1.1 times less risky than NextCure. It trades about -0.09 of its potential returns per unit of risk. NextCure is currently generating about -0.1 per unit of risk. If you would invest 452.00 in Clene Inc on November 27, 2024 and sell it today you would lose (29.00) from holding Clene Inc or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clene Inc vs. NextCure
Performance |
| Timeline |
| Clene Inc |
| NextCure |
Clene and NextCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clene and NextCure
The main advantage of trading using opposite Clene and NextCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clene position performs unexpectedly, NextCure 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 NextCure will offset losses from the drop in NextCure's long position.| Clene vs. MediciNova | Clene vs. Molecular Partners AG | Clene vs. Champions Oncology | Clene vs. Century Therapeutics |
| NextCure vs. CytomX Therapeutics | NextCure vs. Spero Therapeutics | NextCure vs. Instil Bio | NextCure vs. Assembly Biosciences |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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