Correlation Between Eledon Pharmaceuticals and Im Cannabis
Can any of the company-specific risk be diversified away by investing in both Eledon Pharmaceuticals and Im Cannabis 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 Eledon Pharmaceuticals and Im Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eledon Pharmaceuticals and Im Cannabis Corp, you can compare the effects of market volatilities on Eledon Pharmaceuticals and Im Cannabis 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 Eledon Pharmaceuticals with a short position of Im Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eledon Pharmaceuticals and Im Cannabis.
Diversification Opportunities for Eledon Pharmaceuticals and Im Cannabis
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eledon and IMCC is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Eledon Pharmaceuticals and Im Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Im Cannabis Corp and Eledon Pharmaceuticals 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 Eledon Pharmaceuticals are associated (or correlated) with Im Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Im Cannabis Corp has no effect on the direction of Eledon Pharmaceuticals i.e., Eledon Pharmaceuticals and Im Cannabis go up and down completely randomly.
Pair Corralation between Eledon Pharmaceuticals and Im Cannabis
Given the investment horizon of 90 days Eledon Pharmaceuticals is expected to generate 0.55 times more return on investment than Im Cannabis. However, Eledon Pharmaceuticals is 1.82 times less risky than Im Cannabis. It trades about 0.09 of its potential returns per unit of risk. Im Cannabis Corp is currently generating about 0.02 per unit of risk. If you would invest 142.00 in Eledon Pharmaceuticals on September 12, 2024 and sell it today you would earn a total of 341.00 from holding Eledon Pharmaceuticals or generate 240.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eledon Pharmaceuticals vs. Im Cannabis Corp
Performance |
| Timeline |
| Eledon Pharmaceuticals |
| Im Cannabis Corp |
Eledon Pharmaceuticals and Im Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eledon Pharmaceuticals and Im Cannabis
The main advantage of trading using opposite Eledon Pharmaceuticals and Im Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eledon Pharmaceuticals position performs unexpectedly, Im Cannabis 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 Im Cannabis will offset losses from the drop in Im Cannabis' long position.| Eledon Pharmaceuticals vs. Inozyme Pharma | Eledon Pharmaceuticals vs. Day One Biopharmaceuticals | Eledon Pharmaceuticals vs. Terns Pharmaceuticals | Eledon Pharmaceuticals vs. Hookipa Pharma |
| Im Cannabis vs. Clever Leaves Holdings | Im Cannabis vs. Khiron Life Sciences | Im Cannabis vs. Allied Corp | Im Cannabis vs. Biofrontera |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |