Correlation Between Dynavax Technologies and Lantheus Holdings
Can any of the company-specific risk be diversified away by investing in both Dynavax Technologies and Lantheus Holdings 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 Dynavax Technologies and Lantheus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynavax Technologies and Lantheus Holdings, you can compare the effects of market volatilities on Dynavax Technologies and Lantheus Holdings 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 Dynavax Technologies with a short position of Lantheus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynavax Technologies and Lantheus Holdings.
Diversification Opportunities for Dynavax Technologies and Lantheus Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dynavax and Lantheus is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Dynavax Technologies and Lantheus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lantheus Holdings and Dynavax Technologies 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 Dynavax Technologies are associated (or correlated) with Lantheus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lantheus Holdings has no effect on the direction of Dynavax Technologies i.e., Dynavax Technologies and Lantheus Holdings go up and down completely randomly.
Pair Corralation between Dynavax Technologies and Lantheus Holdings
Given the investment horizon of 90 days Dynavax Technologies is expected to generate 4.89 times less return on investment than Lantheus Holdings. But when comparing it to its historical volatility, Dynavax Technologies is 1.84 times less risky than Lantheus Holdings. It trades about 0.04 of its potential returns per unit of risk. Lantheus Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,880 in Lantheus Holdings on November 2, 2024 and sell it today you would earn a total of 399.00 from holding Lantheus Holdings or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynavax Technologies vs. Lantheus Holdings
Performance |
| Timeline |
| Dynavax Technologies |
| Lantheus Holdings |
Dynavax Technologies and Lantheus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynavax Technologies and Lantheus Holdings
The main advantage of trading using opposite Dynavax Technologies and Lantheus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynavax Technologies position performs unexpectedly, Lantheus Holdings 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 Lantheus Holdings will offset losses from the drop in Lantheus Holdings' long position.| Dynavax Technologies vs. Alkermes Plc | Dynavax Technologies vs. Neurocrine Biosciences | Dynavax Technologies vs. Intracellular Th | Dynavax Technologies vs. Aquestive Therapeutics |
| Lantheus Holdings vs. Neurocrine Biosciences | Lantheus Holdings vs. Ironwood Pharmaceuticals | Lantheus Holdings vs. Alkermes Plc | Lantheus Holdings vs. Avadel Pharmaceuticals PLC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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