Correlation Between Infimer and Nextage Therapeutics
Can any of the company-specific risk be diversified away by investing in both Infimer and Nextage 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 Infimer and Nextage Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infimer and Nextage Therapeutics, you can compare the effects of market volatilities on Infimer and Nextage 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 Infimer with a short position of Nextage Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infimer and Nextage Therapeutics.
Diversification Opportunities for Infimer and Nextage Therapeutics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infimer and Nextage is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Infimer and Nextage Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextage Therapeutics and Infimer 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 Infimer are associated (or correlated) with Nextage Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextage Therapeutics has no effect on the direction of Infimer i.e., Infimer and Nextage Therapeutics go up and down completely randomly.
Pair Corralation between Infimer and Nextage Therapeutics
Assuming the 90 days trading horizon Infimer is expected to generate 23.61 times more return on investment than Nextage Therapeutics. However, Infimer is 23.61 times more volatile than Nextage Therapeutics. It trades about 0.17 of its potential returns per unit of risk. Nextage Therapeutics is currently generating about 0.1 per unit of risk. If you would invest 7,480 in Infimer on November 8, 2024 and sell it today you would earn a total of 1,392,520 from holding Infimer or generate 18616.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.48% |
| Values | Daily Returns |
Infimer vs. Nextage Therapeutics
Performance |
| Timeline |
| Infimer |
| Nextage Therapeutics |
Infimer and Nextage Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infimer and Nextage Therapeutics
The main advantage of trading using opposite Infimer and Nextage Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infimer position performs unexpectedly, Nextage 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 Nextage Therapeutics will offset losses from the drop in Nextage Therapeutics' long position.| Infimer vs. Priortech | Infimer vs. Nrgene Technologies | Infimer vs. Blender Financial Technologies | Infimer vs. IDI Insurance |
| Nextage Therapeutics vs. Arad Investment Industrial | Nextage Therapeutics vs. Menif Financial Services | Nextage Therapeutics vs. Tower Semiconductor | Nextage Therapeutics vs. Bank Leumi Le Israel |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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