Correlation Between Intel and Lantern Pharma
Can any of the company-specific risk be diversified away by investing in both Intel and Lantern 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 Intel and Lantern Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Lantern Pharma, you can compare the effects of market volatilities on Intel and Lantern 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 Intel with a short position of Lantern Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Lantern Pharma.
Diversification Opportunities for Intel and Lantern Pharma
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intel and Lantern is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Lantern Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lantern Pharma and Intel 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 Intel are associated (or correlated) with Lantern Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lantern Pharma has no effect on the direction of Intel i.e., Intel and Lantern Pharma go up and down completely randomly.
Pair Corralation between Intel and Lantern Pharma
Given the investment horizon of 90 days Intel is expected to under-perform the Lantern Pharma. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 1.97 times less risky than Lantern Pharma. The stock trades about 0.0 of its potential returns per unit of risk. The Lantern Pharma is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 487.00 in Lantern Pharma on November 27, 2024 and sell it today you would lose (74.00) from holding Lantern Pharma or give up 15.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Lantern Pharma
Performance |
| Timeline |
| Intel |
| Lantern Pharma |
Intel and Lantern Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Lantern Pharma
The main advantage of trading using opposite Intel and Lantern Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Lantern 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 Lantern Pharma will offset losses from the drop in Lantern Pharma's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Lantern Pharma vs. Beam Therapeutics | Lantern Pharma vs. Editas Medicine | Lantern Pharma vs. Caribou Biosciences | Lantern Pharma vs. Verve Therapeutics |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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