Correlation Between Enlivex Therapeutics and Evogene
Can any of the company-specific risk be diversified away by investing in both Enlivex Therapeutics and Evogene 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 Enlivex Therapeutics and Evogene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enlivex Therapeutics and Evogene, you can compare the effects of market volatilities on Enlivex Therapeutics and Evogene 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 Enlivex Therapeutics with a short position of Evogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlivex Therapeutics and Evogene.
Diversification Opportunities for Enlivex Therapeutics and Evogene
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Enlivex and Evogene is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Enlivex Therapeutics and Evogene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evogene and Enlivex 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 Enlivex Therapeutics are associated (or correlated) with Evogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evogene has no effect on the direction of Enlivex Therapeutics i.e., Enlivex Therapeutics and Evogene go up and down completely randomly.
Pair Corralation between Enlivex Therapeutics and Evogene
Assuming the 90 days trading horizon Enlivex Therapeutics is expected to generate 1.61 times more return on investment than Evogene. However, Enlivex Therapeutics is 1.61 times more volatile than Evogene. It trades about 0.01 of its potential returns per unit of risk. Evogene is currently generating about -0.12 per unit of risk. If you would invest 73,160 in Enlivex Therapeutics on September 1, 2024 and sell it today you would lose (31,650) from holding Enlivex Therapeutics or give up 43.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enlivex Therapeutics vs. Evogene
Performance |
| Timeline |
| Enlivex Therapeutics |
| Evogene |
Enlivex Therapeutics and Evogene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enlivex Therapeutics and Evogene
The main advantage of trading using opposite Enlivex Therapeutics and Evogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlivex Therapeutics position performs unexpectedly, Evogene 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 Evogene will offset losses from the drop in Evogene's long position.| Enlivex Therapeutics vs. Discount Investment Corp | Enlivex Therapeutics vs. GODM Investments | Enlivex Therapeutics vs. IDI Insurance | Enlivex Therapeutics vs. Harel Insurance Investments |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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