Correlation Between Lantheus Holdings and Dynavax Technologies
Can any of the company-specific risk be diversified away by investing in both Lantheus Holdings and Dynavax Technologies 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 Lantheus Holdings and Dynavax Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantheus Holdings and Dynavax Technologies, you can compare the effects of market volatilities on Lantheus Holdings and Dynavax Technologies 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 Lantheus Holdings with a short position of Dynavax Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantheus Holdings and Dynavax Technologies.
Diversification Opportunities for Lantheus Holdings and Dynavax Technologies
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lantheus and Dynavax is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Lantheus Holdings and Dynavax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynavax Technologies and Lantheus Holdings 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 Lantheus Holdings are associated (or correlated) with Dynavax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynavax Technologies has no effect on the direction of Lantheus Holdings i.e., Lantheus Holdings and Dynavax Technologies go up and down completely randomly.
Pair Corralation between Lantheus Holdings and Dynavax Technologies
Given the investment horizon of 90 days Lantheus Holdings is expected to generate 1.3 times more return on investment than Dynavax Technologies. However, Lantheus Holdings is 1.3 times more volatile than Dynavax Technologies. It trades about 0.12 of its potential returns per unit of risk. Dynavax Technologies is currently generating about -0.05 per unit of risk. If you would invest 8,515 in Lantheus Holdings on September 13, 2024 and sell it today you would earn a total of 625.00 from holding Lantheus Holdings or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lantheus Holdings vs. Dynavax Technologies
Performance |
| Timeline |
| Lantheus Holdings |
| Dynavax Technologies |
Lantheus Holdings and Dynavax Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantheus Holdings and Dynavax Technologies
The main advantage of trading using opposite Lantheus Holdings and Dynavax Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantheus Holdings position performs unexpectedly, Dynavax Technologies 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 Dynavax Technologies will offset losses from the drop in Dynavax Technologies' long position.| Lantheus Holdings vs. Neurocrine Biosciences | Lantheus Holdings vs. Ironwood Pharmaceuticals | Lantheus Holdings vs. Alkermes Plc | Lantheus Holdings vs. Avadel Pharmaceuticals PLC |
| Dynavax Technologies vs. Alkermes Plc | Dynavax Technologies vs. Neurocrine Biosciences | Dynavax Technologies vs. Intracellular Th | Dynavax Technologies vs. Aquestive Therapeutics |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |