Correlation Between Celyad SA and Innate Pharma
Can any of the company-specific risk be diversified away by investing in both Celyad SA 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 Celyad SA and Innate Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celyad SA and Innate Pharma, you can compare the effects of market volatilities on Celyad SA 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 Celyad SA with a short position of Innate Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celyad SA and Innate Pharma.
Diversification Opportunities for Celyad SA and Innate Pharma
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Celyad and Innate is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Celyad SA and Innate Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innate Pharma and Celyad SA 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 Celyad SA 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 Celyad SA i.e., Celyad SA and Innate Pharma go up and down completely randomly.
Pair Corralation between Celyad SA and Innate Pharma
Given the investment horizon of 90 days Celyad SA is expected to generate 2.74 times more return on investment than Innate Pharma. However, Celyad SA is 2.74 times more volatile than Innate Pharma. It trades about 0.05 of its potential returns per unit of risk. Innate Pharma is currently generating about 0.01 per unit of risk. If you would invest 125.00 in Celyad SA on November 2, 2024 and sell it today you would lose (73.00) from holding Celyad SA or give up 58.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 22.27% |
| Values | Daily Returns |
Celyad SA vs. Innate Pharma
Performance |
| Timeline |
| Celyad SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Innate Pharma |
Celyad SA and Innate Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celyad SA and Innate Pharma
The main advantage of trading using opposite Celyad SA and Innate Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celyad SA 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.| Celyad SA vs. Innate Pharma | Celyad SA vs. Addex Therapeutics | Celyad SA vs. Aptorum Group Ltd | Celyad SA vs. Dyadic International |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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