Correlation Between Entera Bio and Immutep
Can any of the company-specific risk be diversified away by investing in both Entera Bio and Immutep 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 Immutep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entera Bio and Immutep Ltd ADR, you can compare the effects of market volatilities on Entera Bio and Immutep 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 Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entera Bio and Immutep.
Diversification Opportunities for Entera Bio and Immutep
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Entera and Immutep is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Entera Bio and Immutep Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep Ltd ADR 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 Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep Ltd ADR has no effect on the direction of Entera Bio i.e., Entera Bio and Immutep go up and down completely randomly.
Pair Corralation between Entera Bio and Immutep
Given the investment horizon of 90 days Entera Bio is expected to generate 1.11 times more return on investment than Immutep. However, Entera Bio is 1.11 times more volatile than Immutep Ltd ADR. It trades about 0.22 of its potential returns per unit of risk. Immutep Ltd ADR is currently generating about 0.06 per unit of risk. If you would invest 178.00 in Entera Bio on September 15, 2024 and sell it today you would earn a total of 42.00 from holding Entera Bio or generate 23.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entera Bio vs. Immutep Ltd ADR
Performance |
| Timeline |
| Entera Bio |
| Immutep Ltd ADR |
Entera Bio and Immutep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entera Bio and Immutep
The main advantage of trading using opposite Entera Bio and Immutep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entera Bio position performs unexpectedly, Immutep 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 Immutep will offset losses from the drop in Immutep's long position.| Entera Bio vs. Puma Biotechnology | Entera Bio vs. Iovance Biotherapeutics | Entera Bio vs. Day One Biopharmaceuticals | Entera Bio vs. Inozyme Pharma |
| Immutep vs. Ocean Biomedical | Immutep vs. Elevation Oncology | Immutep vs. Zura Bio Limited | Immutep vs. Cns Pharmaceuticals |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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