Correlation Between Equillium and Can Fite
Can any of the company-specific risk be diversified away by investing in both Equillium and Can Fite 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 Equillium and Can Fite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equillium and Can Fite Biopharma, you can compare the effects of market volatilities on Equillium and Can Fite 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 Equillium with a short position of Can Fite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equillium and Can Fite.
Diversification Opportunities for Equillium and Can Fite
Poor diversification
The 3 months correlation between Equillium and Can is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and Can Fite Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fite Biopharma and Equillium 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 Equillium are associated (or correlated) with Can Fite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fite Biopharma has no effect on the direction of Equillium i.e., Equillium and Can Fite go up and down completely randomly.
Pair Corralation between Equillium and Can Fite
Allowing for the 90-day total investment horizon Equillium is expected to generate 1.51 times more return on investment than Can Fite. However, Equillium is 1.51 times more volatile than Can Fite Biopharma. It trades about 0.02 of its potential returns per unit of risk. Can Fite Biopharma is currently generating about -0.04 per unit of risk. If you would invest 140.00 in Equillium on August 30, 2024 and sell it today you would lose (63.00) from holding Equillium or give up 45.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equillium vs. Can Fite Biopharma
Performance |
| Timeline |
| Equillium |
| Can Fite Biopharma |
Equillium and Can Fite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equillium and Can Fite
The main advantage of trading using opposite Equillium and Can Fite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equillium position performs unexpectedly, Can Fite 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 Can Fite will offset losses from the drop in Can Fite's long position.| Equillium vs. Lyra Therapeutics | Equillium vs. Hookipa Pharma | Equillium vs. Jasper Therapeutics | Equillium vs. Cingulate Warrants |
| Can Fite vs. ImmuCell | Can Fite vs. Compugen | Can Fite vs. Evogene | Can Fite vs. Collplant Biotechnologies |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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