Correlation Between Lixte Biotechnology and Innovent Biologics
Can any of the company-specific risk be diversified away by investing in both Lixte Biotechnology and Innovent Biologics 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 Lixte Biotechnology and Innovent Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lixte Biotechnology Holdings and Innovent Biologics, you can compare the effects of market volatilities on Lixte Biotechnology and Innovent Biologics 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 Lixte Biotechnology with a short position of Innovent Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lixte Biotechnology and Innovent Biologics.
Diversification Opportunities for Lixte Biotechnology and Innovent Biologics
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lixte and Innovent is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lixte Biotechnology Holdings and Innovent Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovent Biologics and Lixte Biotechnology 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 Lixte Biotechnology Holdings are associated (or correlated) with Innovent Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovent Biologics has no effect on the direction of Lixte Biotechnology i.e., Lixte Biotechnology and Innovent Biologics go up and down completely randomly.
Pair Corralation between Lixte Biotechnology and Innovent Biologics
Given the investment horizon of 90 days Lixte Biotechnology Holdings is expected to generate 1.63 times more return on investment than Innovent Biologics. However, Lixte Biotechnology is 1.63 times more volatile than Innovent Biologics. It trades about 0.1 of its potential returns per unit of risk. Innovent Biologics is currently generating about 0.08 per unit of risk. 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 |
Lixte Biotechnology Holdings vs. Innovent Biologics
Performance |
| Timeline |
| Lixte Biotechnology |
| Innovent Biologics |
Lixte Biotechnology and Innovent Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lixte Biotechnology and Innovent Biologics
The main advantage of trading using opposite Lixte Biotechnology and Innovent Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lixte Biotechnology position performs unexpectedly, Innovent Biologics 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 Innovent Biologics will offset losses from the drop in Innovent Biologics' long position.| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Neurobo Pharmaceuticals | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd |
| Innovent Biologics vs. Rigel Pharmaceuticals | Innovent Biologics vs. Geron | Innovent Biologics vs. Verastem | Innovent Biologics vs. Immutep Ltd ADR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |