Correlation Between Innate Pharma and Medincell
Can any of the company-specific risk be diversified away by investing in both Innate Pharma and Medincell 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 Medincell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innate Pharma and Medincell SA, you can compare the effects of market volatilities on Innate Pharma and Medincell 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 Medincell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innate Pharma and Medincell.
Diversification Opportunities for Innate Pharma and Medincell
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innate and Medincell is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Innate Pharma and Medincell SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medincell SA 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 Medincell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medincell SA has no effect on the direction of Innate Pharma i.e., Innate Pharma and Medincell go up and down completely randomly.
Pair Corralation between Innate Pharma and Medincell
Assuming the 90 days trading horizon Innate Pharma is expected to under-perform the Medincell. But the stock apears to be less risky and, when comparing its historical volatility, Innate Pharma is 1.04 times less risky than Medincell. The stock trades about -0.03 of its potential returns per unit of risk. The Medincell SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 789.00 in Medincell SA on November 1, 2024 and sell it today you would earn a total of 813.00 from holding Medincell SA or generate 103.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Innate Pharma vs. Medincell SA
Performance |
| Timeline |
| Innate Pharma |
| Medincell SA |
Innate Pharma and Medincell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innate Pharma and Medincell
The main advantage of trading using opposite Innate Pharma and Medincell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innate Pharma position performs unexpectedly, Medincell 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 Medincell will offset losses from the drop in Medincell's long position.| Innate Pharma vs. Genfit | Innate Pharma vs. Nanobiotix SA | Innate Pharma vs. Cellectis | Innate Pharma vs. AB Science SA |
| Medincell vs. Gensight Biologics SA | Medincell vs. OSE Pharma SA | Medincell vs. Eurobio Scientific SA | Medincell vs. Abivax 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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