Correlation Between Liquidia Technologies and Legend Biotech
Can any of the company-specific risk be diversified away by investing in both Liquidia Technologies and Legend Biotech 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 Liquidia Technologies and Legend Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liquidia Technologies and Legend Biotech Corp, you can compare the effects of market volatilities on Liquidia Technologies and Legend Biotech 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 Liquidia Technologies with a short position of Legend Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liquidia Technologies and Legend Biotech.
Diversification Opportunities for Liquidia Technologies and Legend Biotech
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liquidia and Legend is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Liquidia Technologies and Legend Biotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legend Biotech Corp and Liquidia Technologies 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 Liquidia Technologies are associated (or correlated) with Legend Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legend Biotech Corp has no effect on the direction of Liquidia Technologies i.e., Liquidia Technologies and Legend Biotech go up and down completely randomly.
Pair Corralation between Liquidia Technologies and Legend Biotech
Given the investment horizon of 90 days Liquidia Technologies is expected to generate 0.96 times more return on investment than Legend Biotech. However, Liquidia Technologies is 1.04 times less risky than Legend Biotech. It trades about 0.43 of its potential returns per unit of risk. Legend Biotech Corp is currently generating about 0.17 per unit of risk. If you would invest 1,246 in Liquidia Technologies on November 9, 2024 and sell it today you would earn a total of 350.00 from holding Liquidia Technologies or generate 28.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liquidia Technologies vs. Legend Biotech Corp
Performance |
| Timeline |
| Liquidia Technologies |
| Legend Biotech Corp |
Liquidia Technologies and Legend Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liquidia Technologies and Legend Biotech
The main advantage of trading using opposite Liquidia Technologies and Legend Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liquidia Technologies position performs unexpectedly, Legend Biotech 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 Legend Biotech will offset losses from the drop in Legend Biotech's long position.| Liquidia Technologies vs. Biomarin Pharmaceutical | Liquidia Technologies vs. Vaxcyte | Liquidia Technologies vs. Legend Biotech Corp | Liquidia Technologies vs. Bio Techne Corp |
| Legend Biotech vs. Vaxcyte | Legend Biotech vs. Apellis Pharmaceuticals | Legend Biotech vs. Travere Therapeutics | Legend Biotech vs. Akero 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world |