Correlation Between Lantern Pharma and Inhibrx
Can any of the company-specific risk be diversified away by investing in both Lantern Pharma and Inhibrx 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 Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantern Pharma and Inhibrx, you can compare the effects of market volatilities on Lantern Pharma and Inhibrx 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 Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantern Pharma and Inhibrx.
Diversification Opportunities for Lantern Pharma and Inhibrx
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lantern and Inhibrx is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lantern Pharma and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx 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 Inhibrx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibrx has no effect on the direction of Lantern Pharma i.e., Lantern Pharma and Inhibrx go up and down completely randomly.
Pair Corralation between Lantern Pharma and Inhibrx
Given the investment horizon of 90 days Lantern Pharma is expected to generate 1.4 times more return on investment than Inhibrx. However, Lantern Pharma is 1.4 times more volatile than Inhibrx. It trades about -0.01 of its potential returns per unit of risk. Inhibrx is currently generating about -0.03 per unit of risk. If you would invest 331.00 in Lantern Pharma on September 2, 2024 and sell it today you would lose (10.00) from holding Lantern Pharma or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lantern Pharma vs. Inhibrx
Performance |
| Timeline |
| Lantern Pharma |
| Inhibrx |
Lantern Pharma and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantern Pharma and Inhibrx
The main advantage of trading using opposite Lantern Pharma and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantern Pharma position performs unexpectedly, Inhibrx 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 Inhibrx will offset losses from the drop in Inhibrx's long position.| Lantern Pharma vs. Tff Pharmaceuticals | Lantern Pharma vs. Eliem Therapeutics | Lantern Pharma vs. Inhibrx | Lantern Pharma vs. Enliven Therapeutics |
| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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