Correlation Between Inozyme Pharma and Affimed NV
Can any of the company-specific risk be diversified away by investing in both Inozyme Pharma and Affimed NV 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 Inozyme Pharma and Affimed NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inozyme Pharma and Affimed NV, you can compare the effects of market volatilities on Inozyme Pharma and Affimed NV 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 Inozyme Pharma with a short position of Affimed NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inozyme Pharma and Affimed NV.
Diversification Opportunities for Inozyme Pharma and Affimed NV
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Inozyme and Affimed is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Inozyme Pharma and Affimed NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affimed NV and Inozyme Pharma 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 Inozyme Pharma are associated (or correlated) with Affimed NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affimed NV has no effect on the direction of Inozyme Pharma i.e., Inozyme Pharma and Affimed NV go up and down completely randomly.
Pair Corralation between Inozyme Pharma and Affimed NV
Given the investment horizon of 90 days Inozyme Pharma is expected to generate 0.86 times more return on investment than Affimed NV. However, Inozyme Pharma is 1.16 times less risky than Affimed NV. It trades about 0.05 of its potential returns per unit of risk. Affimed NV is currently generating about -0.04 per unit of risk. If you would invest 141.00 in Inozyme Pharma on August 23, 2024 and sell it today you would earn a total of 126.00 from holding Inozyme Pharma or generate 89.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inozyme Pharma vs. Affimed NV
Performance |
| Timeline |
| Inozyme Pharma |
| Affimed NV |
Inozyme Pharma and Affimed NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inozyme Pharma and Affimed NV
The main advantage of trading using opposite Inozyme Pharma and Affimed NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inozyme Pharma position performs unexpectedly, Affimed NV 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 Affimed NV will offset losses from the drop in Affimed NV's long position.| Inozyme Pharma vs. Kiora Pharmaceuticals | Inozyme Pharma vs. ZyVersa Therapeutics | Inozyme Pharma vs. Sonnet Biotherapeutics Holdings | Inozyme Pharma vs. Zura Bio Limited |
| Affimed NV vs. Pieris Pharmaceuticals | Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals |
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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