Correlation Between Iovance Biotherapeutics and Elevation Oncology
Can any of the company-specific risk be diversified away by investing in both Iovance Biotherapeutics and Elevation Oncology 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 Iovance Biotherapeutics and Elevation Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iovance Biotherapeutics and Elevation Oncology, you can compare the effects of market volatilities on Iovance Biotherapeutics and Elevation Oncology 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 Iovance Biotherapeutics with a short position of Elevation Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iovance Biotherapeutics and Elevation Oncology.
Diversification Opportunities for Iovance Biotherapeutics and Elevation Oncology
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iovance and Elevation is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Iovance Biotherapeutics and Elevation Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevation Oncology and Iovance Biotherapeutics 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 Iovance Biotherapeutics are associated (or correlated) with Elevation Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevation Oncology has no effect on the direction of Iovance Biotherapeutics i.e., Iovance Biotherapeutics and Elevation Oncology go up and down completely randomly.
Pair Corralation between Iovance Biotherapeutics and Elevation Oncology
Given the investment horizon of 90 days Iovance Biotherapeutics is expected to under-perform the Elevation Oncology. But the stock apears to be less risky and, when comparing its historical volatility, Iovance Biotherapeutics is 1.49 times less risky than Elevation Oncology. The stock trades about -0.13 of its potential returns per unit of risk. The Elevation Oncology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 62.00 in Elevation Oncology on September 14, 2024 and sell it today you would earn a total of 5.00 from holding Elevation Oncology or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iovance Biotherapeutics vs. Elevation Oncology
Performance |
| Timeline |
| Iovance Biotherapeutics |
| Elevation Oncology |
Iovance Biotherapeutics and Elevation Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iovance Biotherapeutics and Elevation Oncology
The main advantage of trading using opposite Iovance Biotherapeutics and Elevation Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iovance Biotherapeutics position performs unexpectedly, Elevation Oncology 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 Elevation Oncology will offset losses from the drop in Elevation Oncology's long position.| Iovance Biotherapeutics vs. PTC Therapeutics | Iovance Biotherapeutics vs. Krystal Biotech | Iovance Biotherapeutics vs. Sarepta Therapeutics | Iovance Biotherapeutics vs. Madrigal Pharmaceuticals |
| Elevation Oncology vs. Puma Biotechnology | Elevation Oncology vs. Iovance Biotherapeutics | Elevation Oncology vs. Sarepta Therapeutics | Elevation Oncology vs. Day One Biopharmaceuticals |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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