Correlation Between Lantern Pharma and Enliven Therapeutics
Can any of the company-specific risk be diversified away by investing in both Lantern Pharma and Enliven 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 Lantern Pharma and Enliven Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantern Pharma and Enliven Therapeutics, you can compare the effects of market volatilities on Lantern Pharma and Enliven 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 Lantern Pharma with a short position of Enliven Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantern Pharma and Enliven Therapeutics.
Diversification Opportunities for Lantern Pharma and Enliven Therapeutics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lantern and Enliven is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lantern Pharma and Enliven Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enliven Therapeutics 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 Enliven Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enliven Therapeutics has no effect on the direction of Lantern Pharma i.e., Lantern Pharma and Enliven Therapeutics go up and down completely randomly.
Pair Corralation between Lantern Pharma and Enliven Therapeutics
Given the investment horizon of 90 days Lantern Pharma is expected to generate 9.57 times less return on investment than Enliven Therapeutics. In addition to that, Lantern Pharma is 1.22 times more volatile than Enliven Therapeutics. It trades about 0.0 of its total potential returns per unit of risk. Enliven Therapeutics is currently generating about 0.04 per unit of volatility. If you would invest 1,919 in Enliven Therapeutics on August 31, 2024 and sell it today you would earn a total of 622.00 from holding Enliven Therapeutics or generate 32.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lantern Pharma vs. Enliven Therapeutics
Performance |
| Timeline |
| Lantern Pharma |
| Enliven Therapeutics |
Lantern Pharma and Enliven Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantern Pharma and Enliven Therapeutics
The main advantage of trading using opposite Lantern Pharma and Enliven Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantern Pharma position performs unexpectedly, Enliven 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 Enliven Therapeutics will offset losses from the drop in Enliven Therapeutics' long position.| Lantern Pharma vs. Cue Biopharma | Lantern Pharma vs. Tff Pharmaceuticals | Lantern Pharma vs. Eliem Therapeutics | Lantern Pharma vs. Inhibrx |
| Enliven Therapeutics vs. Cue Biopharma | Enliven Therapeutics vs. Tff Pharmaceuticals | Enliven Therapeutics vs. Eliem Therapeutics | Enliven Therapeutics vs. Inhibrx |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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