Correlation Between Entera Bio and Histogen
Can any of the company-specific risk be diversified away by investing in both Entera Bio and Histogen 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 Entera Bio and Histogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entera Bio and Histogen, you can compare the effects of market volatilities on Entera Bio and Histogen 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 Entera Bio with a short position of Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entera Bio and Histogen.
Diversification Opportunities for Entera Bio and Histogen
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Entera and Histogen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Entera Bio and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen and Entera Bio 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 Entera Bio are associated (or correlated) with Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of Entera Bio i.e., Entera Bio and Histogen go up and down completely randomly.
Pair Corralation between Entera Bio and Histogen
Given the investment horizon of 90 days Entera Bio is expected to generate 0.14 times more return on investment than Histogen. However, Entera Bio is 7.12 times less risky than Histogen. It trades about -0.21 of its potential returns per unit of risk. Histogen is currently generating about -0.3 per unit of risk. If you would invest 186.00 in Entera Bio on August 29, 2024 and sell it today you would lose (25.00) from holding Entera Bio or give up 13.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Entera Bio vs. Histogen
Performance |
| Timeline |
| Entera Bio |
| Histogen |
Entera Bio and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entera Bio and Histogen
The main advantage of trading using opposite Entera Bio and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entera Bio position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| Entera Bio vs. NLS Pharmaceutics AG | Entera Bio vs. Vaccinex | Entera Bio vs. Alterity Therapeutics | Entera Bio vs. Immutep Ltd ADR |
| Histogen vs. PayPal Holdings | Histogen vs. Nasdaq Inc | Histogen vs. Choice Hotels International | Histogen vs. Microsoft |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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