Correlation Between Enliven Therapeutics and Evaxion Biotech
Can any of the company-specific risk be diversified away by investing in both Enliven Therapeutics and Evaxion Biotech 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 Enliven Therapeutics and Evaxion Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enliven Therapeutics and Evaxion Biotech AS, you can compare the effects of market volatilities on Enliven Therapeutics and Evaxion Biotech 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 Enliven Therapeutics with a short position of Evaxion Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enliven Therapeutics and Evaxion Biotech.
Diversification Opportunities for Enliven Therapeutics and Evaxion Biotech
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enliven and Evaxion is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Enliven Therapeutics and Evaxion Biotech AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evaxion Biotech AS and Enliven Therapeutics 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 Enliven Therapeutics are associated (or correlated) with Evaxion Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evaxion Biotech AS has no effect on the direction of Enliven Therapeutics i.e., Enliven Therapeutics and Evaxion Biotech go up and down completely randomly.
Pair Corralation between Enliven Therapeutics and Evaxion Biotech
Given the investment horizon of 90 days Enliven Therapeutics is expected to generate 0.53 times more return on investment than Evaxion Biotech. However, Enliven Therapeutics is 1.87 times less risky than Evaxion Biotech. It trades about 0.08 of its potential returns per unit of risk. Evaxion Biotech AS is currently generating about -0.02 per unit of risk. If you would invest 1,199 in Enliven Therapeutics on September 3, 2024 and sell it today you would earn a total of 1,244 from holding Enliven Therapeutics or generate 103.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enliven Therapeutics vs. Evaxion Biotech AS
Performance |
| Timeline |
| Enliven Therapeutics |
| Evaxion Biotech AS |
Enliven Therapeutics and Evaxion Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enliven Therapeutics and Evaxion Biotech
The main advantage of trading using opposite Enliven Therapeutics and Evaxion Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enliven Therapeutics position performs unexpectedly, Evaxion Biotech 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 Evaxion Biotech will offset losses from the drop in Evaxion Biotech's long position.| Enliven Therapeutics vs. DiaMedica Therapeutics | Enliven Therapeutics vs. Lyra Therapeutics | Enliven Therapeutics vs. Centessa Pharmaceuticals PLC |
| Evaxion Biotech vs. DiaMedica Therapeutics | Evaxion Biotech vs. Lyra Therapeutics | Evaxion Biotech vs. Centessa 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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