Correlation Between Kiromic Biopharma and Eledon Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Kiromic Biopharma and Eledon Pharmaceuticals 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 Kiromic Biopharma and Eledon Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kiromic Biopharma and Eledon Pharmaceuticals, you can compare the effects of market volatilities on Kiromic Biopharma and Eledon Pharmaceuticals 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 Kiromic Biopharma with a short position of Eledon Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kiromic Biopharma and Eledon Pharmaceuticals.
Diversification Opportunities for Kiromic Biopharma and Eledon Pharmaceuticals
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kiromic and Eledon is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kiromic Biopharma and Eledon Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eledon Pharmaceuticals and Kiromic Biopharma 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 Kiromic Biopharma are associated (or correlated) with Eledon Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eledon Pharmaceuticals has no effect on the direction of Kiromic Biopharma i.e., Kiromic Biopharma and Eledon Pharmaceuticals go up and down completely randomly.
Pair Corralation between Kiromic Biopharma and Eledon Pharmaceuticals
If you would invest 244.00 in Eledon Pharmaceuticals on September 3, 2024 and sell it today you would earn a total of 222.00 from holding Eledon Pharmaceuticals or generate 90.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
Kiromic Biopharma vs. Eledon Pharmaceuticals
Performance |
| Timeline |
| Kiromic Biopharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eledon Pharmaceuticals |
Kiromic Biopharma and Eledon Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kiromic Biopharma and Eledon Pharmaceuticals
The main advantage of trading using opposite Kiromic Biopharma and Eledon Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kiromic Biopharma position performs unexpectedly, Eledon Pharmaceuticals 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 Eledon Pharmaceuticals will offset losses from the drop in Eledon Pharmaceuticals' long position.| Kiromic Biopharma vs. Quoin Pharmaceuticals Ltd | Kiromic Biopharma vs. Allarity Therapeutics | Kiromic Biopharma vs. Virax Biolabs Group | Kiromic Biopharma vs. Biodexa Pharmaceticals |
| Eledon Pharmaceuticals vs. DiaMedica Therapeutics | Eledon Pharmaceuticals vs. Lyra Therapeutics | Eledon Pharmaceuticals vs. Centessa Pharmaceuticals PLC |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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