Correlation Between Innovent Biologics and Lixte Biotechnology
Can any of the company-specific risk be diversified away by investing in both Innovent Biologics and Lixte Biotechnology 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 Innovent Biologics and Lixte Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovent Biologics and Lixte Biotechnology Holdings, you can compare the effects of market volatilities on Innovent Biologics and Lixte Biotechnology 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 Innovent Biologics with a short position of Lixte Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovent Biologics and Lixte Biotechnology.
Diversification Opportunities for Innovent Biologics and Lixte Biotechnology
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Innovent and Lixte is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Innovent Biologics and Lixte Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixte Biotechnology and Innovent Biologics 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 Innovent Biologics are associated (or correlated) with Lixte Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixte Biotechnology has no effect on the direction of Innovent Biologics i.e., Innovent Biologics and Lixte Biotechnology go up and down completely randomly.
Pair Corralation between Innovent Biologics and Lixte Biotechnology
Assuming the 90 days horizon Innovent Biologics is expected to generate 1.92 times less return on investment than Lixte Biotechnology. But when comparing it to its historical volatility, Innovent Biologics is 1.63 times less risky than Lixte Biotechnology. It trades about 0.08 of its potential returns per unit of risk. Lixte Biotechnology Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 202.00 in Lixte Biotechnology Holdings on September 2, 2024 and sell it today you would earn a total of 21.00 from holding Lixte Biotechnology Holdings or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Innovent Biologics vs. Lixte Biotechnology Holdings
Performance |
| Timeline |
| Innovent Biologics |
| Lixte Biotechnology |
Innovent Biologics and Lixte Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovent Biologics and Lixte Biotechnology
The main advantage of trading using opposite Innovent Biologics and Lixte Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovent Biologics position performs unexpectedly, Lixte Biotechnology 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 Lixte Biotechnology will offset losses from the drop in Lixte Biotechnology's long position.| Innovent Biologics vs. Rigel Pharmaceuticals | Innovent Biologics vs. Geron | Innovent Biologics vs. Verastem | Innovent Biologics vs. Immutep Ltd ADR |
| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Neurobo Pharmaceuticals | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |