Correlation Between Logan Ridge and Mink Therapeutics
Can any of the company-specific risk be diversified away by investing in both Logan Ridge and Mink Therapeutics 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 Logan Ridge and Mink Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logan Ridge Finance and Mink Therapeutics, you can compare the effects of market volatilities on Logan Ridge and Mink Therapeutics 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 Logan Ridge with a short position of Mink Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and Mink Therapeutics.
Diversification Opportunities for Logan Ridge and Mink Therapeutics
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Logan and Mink is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and Mink Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mink Therapeutics and Logan Ridge 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 Logan Ridge Finance are associated (or correlated) with Mink Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mink Therapeutics has no effect on the direction of Logan Ridge i.e., Logan Ridge and Mink Therapeutics go up and down completely randomly.
Pair Corralation between Logan Ridge and Mink Therapeutics
Given the investment horizon of 90 days Logan Ridge Finance is expected to generate 0.57 times more return on investment than Mink Therapeutics. However, Logan Ridge Finance is 1.76 times less risky than Mink Therapeutics. It trades about 0.03 of its potential returns per unit of risk. Mink Therapeutics is currently generating about 0.01 per unit of risk. If you would invest 2,485 in Logan Ridge Finance on September 3, 2024 and sell it today you would earn a total of 16.00 from holding Logan Ridge Finance or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logan Ridge Finance vs. Mink Therapeutics
Performance |
| Timeline |
| Logan Ridge Finance |
| Mink Therapeutics |
Logan Ridge and Mink Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and Mink Therapeutics
The main advantage of trading using opposite Logan Ridge and Mink Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge position performs unexpectedly, Mink Therapeutics 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 Mink Therapeutics will offset losses from the drop in Mink Therapeutics' long position.| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
| Mink Therapeutics vs. Affimed NV | Mink Therapeutics vs. Adaptimmune Therapeutics Plc | Mink Therapeutics vs. Sangamo Therapeutics | Mink Therapeutics vs. Day One Biopharmaceuticals |
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.
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