Correlation Between INmune Bio and Fennec Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both INmune Bio and Fennec Pharmaceuticals 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 INmune Bio and Fennec Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INmune Bio and Fennec Pharmaceuticals, you can compare the effects of market volatilities on INmune Bio and Fennec Pharmaceuticals 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 INmune Bio with a short position of Fennec Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of INmune Bio and Fennec Pharmaceuticals.
Diversification Opportunities for INmune Bio and Fennec Pharmaceuticals
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INmune and Fennec is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding INmune Bio and Fennec Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fennec Pharmaceuticals and INmune Bio 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 INmune Bio are associated (or correlated) with Fennec Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fennec Pharmaceuticals has no effect on the direction of INmune Bio i.e., INmune Bio and Fennec Pharmaceuticals go up and down completely randomly.
Pair Corralation between INmune Bio and Fennec Pharmaceuticals
Given the investment horizon of 90 days INmune Bio is expected to under-perform the Fennec Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, INmune Bio is 1.59 times less risky than Fennec Pharmaceuticals. The stock trades about -0.27 of its potential returns per unit of risk. The Fennec Pharmaceuticals is currently generating about 0.22 of returns per unit of risk over similar time horizon. 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 |
INmune Bio vs. Fennec Pharmaceuticals
Performance |
| Timeline |
| INmune Bio |
| Fennec Pharmaceuticals |
INmune Bio and Fennec Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INmune Bio and Fennec Pharmaceuticals
The main advantage of trading using opposite INmune Bio and Fennec Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INmune Bio position performs unexpectedly, Fennec Pharmaceuticals 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 Fennec Pharmaceuticals will offset losses from the drop in Fennec Pharmaceuticals' long position.| INmune Bio vs. Tff Pharmaceuticals | INmune Bio vs. Anebulo Pharmaceuticals | INmune Bio vs. AN2 Therapeutics | INmune Bio vs. Cue Biopharma |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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