Correlation Between Emmaus Life and MediciNova
Can any of the company-specific risk be diversified away by investing in both Emmaus Life and MediciNova 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 Emmaus Life and MediciNova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emmaus Life Sciences and MediciNova, you can compare the effects of market volatilities on Emmaus Life and MediciNova 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 Emmaus Life with a short position of MediciNova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emmaus Life and MediciNova.
Diversification Opportunities for Emmaus Life and MediciNova
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emmaus and MediciNova is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Emmaus Life Sciences and MediciNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediciNova and Emmaus Life 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 Emmaus Life Sciences are associated (or correlated) with MediciNova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediciNova has no effect on the direction of Emmaus Life i.e., Emmaus Life and MediciNova go up and down completely randomly.
Pair Corralation between Emmaus Life and MediciNova
If you would invest 168.00 in MediciNova on September 1, 2024 and sell it today you would earn a total of 39.00 from holding MediciNova or generate 23.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Emmaus Life Sciences vs. MediciNova
Performance |
| Timeline |
| Emmaus Life Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MediciNova |
Emmaus Life and MediciNova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emmaus Life and MediciNova
The main advantage of trading using opposite Emmaus Life and MediciNova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emmaus Life position performs unexpectedly, MediciNova 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 MediciNova will offset losses from the drop in MediciNova's long position.| Emmaus Life vs. NRx Pharmaceuticals | Emmaus Life vs. Cell Source | Emmaus Life vs. Anebulo Pharmaceuticals | Emmaus Life vs. Adagene |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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