Correlation Between Eyenovia and Entera Bio
Can any of the company-specific risk be diversified away by investing in both Eyenovia and Entera 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 Eyenovia and Entera Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eyenovia and Entera Bio, you can compare the effects of market volatilities on Eyenovia and Entera 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 Eyenovia with a short position of Entera Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyenovia and Entera Bio.
Diversification Opportunities for Eyenovia and Entera Bio
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eyenovia and Entera is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eyenovia and Entera Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entera Bio and Eyenovia 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 Eyenovia are associated (or correlated) with Entera Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entera Bio has no effect on the direction of Eyenovia i.e., Eyenovia and Entera Bio go up and down completely randomly.
Pair Corralation between Eyenovia and Entera Bio
Given the investment horizon of 90 days Eyenovia is expected to under-perform the Entera Bio. In addition to that, Eyenovia is 3.72 times more volatile than Entera Bio. It trades about -0.18 of its total potential returns per unit of risk. Entera Bio is currently generating about 0.22 per unit of volatility. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyenovia vs. Entera Bio
Performance |
| Timeline |
| Eyenovia |
| Entera Bio |
Eyenovia and Entera Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyenovia and Entera Bio
The main advantage of trading using opposite Eyenovia and Entera Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyenovia position performs unexpectedly, Entera 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 Entera Bio will offset losses from the drop in Entera Bio's long position.| Eyenovia vs. Emergent Biosolutions | Eyenovia vs. Bausch Health Companies | Eyenovia vs. Neurocrine Biosciences | Eyenovia vs. Teva Pharma Industries |
| Entera Bio vs. Puma Biotechnology | Entera Bio vs. Iovance Biotherapeutics | Entera Bio vs. Day One Biopharmaceuticals | Entera Bio vs. Inozyme Pharma |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |