Correlation Between Geron and Innate Pharma
Can any of the company-specific risk be diversified away by investing in both Geron and Innate Pharma 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 Geron and Innate Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and Innate Pharma, you can compare the effects of market volatilities on Geron and Innate Pharma 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 Geron with a short position of Innate Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Innate Pharma.
Diversification Opportunities for Geron and Innate Pharma
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Geron and Innate is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Geron and Innate Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innate Pharma and Geron 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 Geron are associated (or correlated) with Innate Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innate Pharma has no effect on the direction of Geron i.e., Geron and Innate Pharma go up and down completely randomly.
Pair Corralation between Geron and Innate Pharma
If you would invest 290.00 in Innate Pharma on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Innate Pharma or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Geron vs. Innate Pharma
Performance |
| Timeline |
| Geron |
| Innate Pharma |
Geron and Innate Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Innate Pharma
The main advantage of trading using opposite Geron and Innate Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, Innate Pharma 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 Innate Pharma will offset losses from the drop in Innate Pharma's long position.| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
| Innate Pharma vs. Defence Therapeutics | Innate Pharma vs. Kiora Pharmaceuticals | Innate Pharma vs. Sino Biopharmaceutical Limited | Innate Pharma vs. GT 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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