Correlation Between Hepion Pharmaceuticals and BioLineRx
Can any of the company-specific risk be diversified away by investing in both Hepion Pharmaceuticals and BioLineRx 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 Hepion Pharmaceuticals and BioLineRx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hepion Pharmaceuticals and BioLineRx, you can compare the effects of market volatilities on Hepion Pharmaceuticals and BioLineRx 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 Hepion Pharmaceuticals with a short position of BioLineRx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hepion Pharmaceuticals and BioLineRx.
Diversification Opportunities for Hepion Pharmaceuticals and BioLineRx
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hepion and BioLineRx is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hepion Pharmaceuticals and BioLineRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLineRx and Hepion 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 Hepion Pharmaceuticals are associated (or correlated) with BioLineRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLineRx has no effect on the direction of Hepion Pharmaceuticals i.e., Hepion Pharmaceuticals and BioLineRx go up and down completely randomly.
Pair Corralation between Hepion Pharmaceuticals and BioLineRx
Given the investment horizon of 90 days Hepion Pharmaceuticals is expected to generate 0.29 times more return on investment than BioLineRx. However, Hepion Pharmaceuticals is 3.44 times less risky than BioLineRx. It trades about -0.05 of its potential returns per unit of risk. BioLineRx is currently generating about -0.1 per unit of risk. If you would invest 67.00 in Hepion Pharmaceuticals on August 31, 2024 and sell it today you would lose (3.00) from holding Hepion Pharmaceuticals or give up 4.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hepion Pharmaceuticals vs. BioLineRx
Performance |
| Timeline |
| Hepion Pharmaceuticals |
| BioLineRx |
Hepion Pharmaceuticals and BioLineRx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hepion Pharmaceuticals and BioLineRx
The main advantage of trading using opposite Hepion Pharmaceuticals and BioLineRx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hepion Pharmaceuticals position performs unexpectedly, BioLineRx 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 BioLineRx will offset losses from the drop in BioLineRx's long position.| Hepion Pharmaceuticals vs. Cue Biopharma | Hepion Pharmaceuticals vs. Eliem Therapeutics | Hepion Pharmaceuticals vs. Inhibrx | Hepion Pharmaceuticals vs. Molecular Partners AG |
| BioLineRx vs. Ardelyx | BioLineRx vs. Lexicon Pharmaceuticals | BioLineRx vs. Seres Therapeutics | BioLineRx vs. Immunitybio |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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