Correlation Between Innate Pharma and Cellectis
Can any of the company-specific risk be diversified away by investing in both Innate Pharma and Cellectis 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 Innate Pharma and Cellectis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innate Pharma and Cellectis, you can compare the effects of market volatilities on Innate Pharma and Cellectis 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 Innate Pharma with a short position of Cellectis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innate Pharma and Cellectis.
Diversification Opportunities for Innate Pharma and Cellectis
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Innate and Cellectis is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Innate Pharma and Cellectis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellectis and Innate 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 Innate Pharma are associated (or correlated) with Cellectis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellectis has no effect on the direction of Innate Pharma i.e., Innate Pharma and Cellectis go up and down completely randomly.
Pair Corralation between Innate Pharma and Cellectis
Assuming the 90 days trading horizon Innate Pharma is expected to under-perform the Cellectis. But the stock apears to be less risky and, when comparing its historical volatility, Innate Pharma is 3.55 times less risky than Cellectis. The stock trades about -0.05 of its potential returns per unit of risk. The Cellectis is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 296.00 in Cellectis on August 31, 2024 and sell it today you would lose (109.00) from holding Cellectis or give up 36.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innate Pharma vs. Cellectis
Performance |
| Timeline |
| Innate Pharma |
| Cellectis |
Innate Pharma and Cellectis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innate Pharma and Cellectis
The main advantage of trading using opposite Innate Pharma and Cellectis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innate Pharma position performs unexpectedly, Cellectis 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 Cellectis will offset losses from the drop in Cellectis' long position.| Innate Pharma vs. Genfit | Innate Pharma vs. Nanobiotix SA | Innate Pharma vs. Cellectis | Innate Pharma vs. AB Science SA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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