Correlation Between Emmaus Life and Nuvation Bio
Can any of the company-specific risk be diversified away by investing in both Emmaus Life and Nuvation Bio 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 Nuvation Bio 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 Nuvation Bio, you can compare the effects of market volatilities on Emmaus Life and Nuvation Bio 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 Nuvation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emmaus Life and Nuvation Bio.
Diversification Opportunities for Emmaus Life and Nuvation Bio
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Emmaus and Nuvation is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Emmaus Life Sciences and Nuvation Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuvation Bio 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 Nuvation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuvation Bio has no effect on the direction of Emmaus Life i.e., Emmaus Life and Nuvation Bio go up and down completely randomly.
Pair Corralation between Emmaus Life and Nuvation Bio
If you would invest 26.00 in Emmaus Life Sciences on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Emmaus Life Sciences or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Emmaus Life Sciences vs. Nuvation Bio
Performance |
| Timeline |
| Emmaus Life Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuvation Bio |
Emmaus Life and Nuvation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emmaus Life and Nuvation Bio
The main advantage of trading using opposite Emmaus Life and Nuvation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emmaus Life position performs unexpectedly, Nuvation Bio 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 Nuvation Bio will offset losses from the drop in Nuvation Bio's long position.| Emmaus Life vs. NRx Pharmaceuticals | Emmaus Life vs. Cell Source | Emmaus Life vs. Anebulo Pharmaceuticals | Emmaus Life vs. Adagene |
| Nuvation Bio vs. Eliem Therapeutics | Nuvation Bio vs. Scpharmaceuticals | Nuvation Bio vs. Milestone Pharmaceuticals | Nuvation Bio vs. Seres Therapeutics |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |