Correlation Between Fennec Pharmaceuticals and INmune Bio
Can any of the company-specific risk be diversified away by investing in both Fennec Pharmaceuticals and INmune 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 Fennec Pharmaceuticals and INmune Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fennec Pharmaceuticals and INmune Bio, you can compare the effects of market volatilities on Fennec Pharmaceuticals and INmune 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 Fennec Pharmaceuticals with a short position of INmune Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fennec Pharmaceuticals and INmune Bio.
Diversification Opportunities for Fennec Pharmaceuticals and INmune Bio
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fennec and INmune is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fennec Pharmaceuticals and INmune Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INmune Bio and Fennec Pharmaceuticals 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 Fennec Pharmaceuticals are associated (or correlated) with INmune Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INmune Bio has no effect on the direction of Fennec Pharmaceuticals i.e., Fennec Pharmaceuticals and INmune Bio go up and down completely randomly.
Pair Corralation between Fennec Pharmaceuticals and INmune Bio
Given the investment horizon of 90 days Fennec Pharmaceuticals is expected to generate 1.59 times more return on investment than INmune Bio. However, Fennec Pharmaceuticals is 1.59 times more volatile than INmune Bio. It trades about 0.22 of its potential returns per unit of risk. INmune Bio is currently generating about -0.27 per unit of risk. If you would invest 473.00 in Fennec Pharmaceuticals on August 29, 2024 and sell it today you would earn a total of 131.00 from holding Fennec Pharmaceuticals or generate 27.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fennec Pharmaceuticals vs. INmune Bio
Performance |
| Timeline |
| Fennec Pharmaceuticals |
| INmune Bio |
Fennec Pharmaceuticals and INmune Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fennec Pharmaceuticals and INmune Bio
The main advantage of trading using opposite Fennec Pharmaceuticals and INmune Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fennec Pharmaceuticals position performs unexpectedly, INmune 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 INmune Bio will offset losses from the drop in INmune Bio's long position.| Fennec Pharmaceuticals vs. Eliem Therapeutics | Fennec Pharmaceuticals vs. Scpharmaceuticals | Fennec Pharmaceuticals vs. Milestone Pharmaceuticals | Fennec Pharmaceuticals vs. Seres Therapeutics |
| INmune Bio vs. Tff Pharmaceuticals | INmune Bio vs. Anebulo Pharmaceuticals | INmune Bio vs. AN2 Therapeutics | INmune Bio vs. Cue Biopharma |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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