Correlation Between Infinity Pharmaceuticals and Tenax Therapeutics
Can any of the company-specific risk be diversified away by investing in both Infinity Pharmaceuticals and Tenax Therapeutics 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 Infinity Pharmaceuticals and Tenax Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinity Pharmaceuticals and Tenax Therapeutics, you can compare the effects of market volatilities on Infinity Pharmaceuticals and Tenax Therapeutics 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 Infinity Pharmaceuticals with a short position of Tenax Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Pharmaceuticals and Tenax Therapeutics.
Diversification Opportunities for Infinity Pharmaceuticals and Tenax Therapeutics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Infinity and Tenax is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Pharmaceuticals and Tenax Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenax Therapeutics and Infinity 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 Infinity Pharmaceuticals are associated (or correlated) with Tenax Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenax Therapeutics has no effect on the direction of Infinity Pharmaceuticals i.e., Infinity Pharmaceuticals and Tenax Therapeutics go up and down completely randomly.
Pair Corralation between Infinity Pharmaceuticals and Tenax Therapeutics
If you would invest 449.00 in Tenax Therapeutics on September 2, 2024 and sell it today you would earn a total of 87.00 from holding Tenax Therapeutics or generate 19.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Infinity Pharmaceuticals vs. Tenax Therapeutics
Performance |
| Timeline |
| Infinity Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tenax Therapeutics |
Infinity Pharmaceuticals and Tenax Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinity Pharmaceuticals and Tenax Therapeutics
The main advantage of trading using opposite Infinity Pharmaceuticals and Tenax Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Pharmaceuticals position performs unexpectedly, Tenax Therapeutics 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 Tenax Therapeutics will offset losses from the drop in Tenax Therapeutics' long position.| Infinity Pharmaceuticals vs. NextCure | Infinity Pharmaceuticals vs. Chimerix | Infinity Pharmaceuticals vs. Eledon Pharmaceuticals | Infinity Pharmaceuticals vs. CytomX Therapeutics |
| Tenax Therapeutics vs. Allarity Therapeutics | Tenax Therapeutics vs. Neurobo Pharmaceuticals | Tenax Therapeutics vs. Virax Biolabs Group | Tenax Therapeutics vs. Quoin Pharmaceuticals Ltd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |