Correlation Between Lantern Pharma and Annexon
Can any of the company-specific risk be diversified away by investing in both Lantern Pharma and Annexon 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 Lantern Pharma and Annexon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantern Pharma and Annexon, you can compare the effects of market volatilities on Lantern Pharma and Annexon 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 Lantern Pharma with a short position of Annexon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantern Pharma and Annexon.
Diversification Opportunities for Lantern Pharma and Annexon
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lantern and Annexon is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lantern Pharma and Annexon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annexon and Lantern Pharma 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 Lantern Pharma are associated (or correlated) with Annexon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annexon has no effect on the direction of Lantern Pharma i.e., Lantern Pharma and Annexon go up and down completely randomly.
Pair Corralation between Lantern Pharma and Annexon
Given the investment horizon of 90 days Lantern Pharma is expected to generate 1.59 times more return on investment than Annexon. However, Lantern Pharma is 1.59 times more volatile than Annexon. It trades about -0.14 of its potential returns per unit of risk. Annexon is currently generating about -0.5 per unit of risk. If you would invest 366.00 in Lantern Pharma on August 29, 2024 and sell it today you would lose (59.00) from holding Lantern Pharma or give up 16.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lantern Pharma vs. Annexon
Performance |
| Timeline |
| Lantern Pharma |
| Annexon |
Lantern Pharma and Annexon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantern Pharma and Annexon
The main advantage of trading using opposite Lantern Pharma and Annexon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantern Pharma position performs unexpectedly, Annexon 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 Annexon will offset losses from the drop in Annexon's long position.| Lantern Pharma vs. Tff Pharmaceuticals | Lantern Pharma vs. Generation Bio Co | Lantern Pharma vs. Lyra Therapeutics | Lantern Pharma vs. Immunome |
| Annexon vs. Eliem Therapeutics | Annexon vs. Scpharmaceuticals | Annexon vs. Milestone Pharmaceuticals | Annexon vs. Seres 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |