Correlation Between Lantern Pharma and INmune Bio
Can any of the company-specific risk be diversified away by investing in both Lantern Pharma and INmune Bio 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 INmune Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantern Pharma and INmune Bio, you can compare the effects of market volatilities on Lantern Pharma and INmune Bio 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 INmune Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantern Pharma and INmune Bio.
Diversification Opportunities for Lantern Pharma and INmune Bio
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lantern and INmune is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Lantern Pharma and INmune Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INmune Bio 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 INmune Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INmune Bio has no effect on the direction of Lantern Pharma i.e., Lantern Pharma and INmune Bio go up and down completely randomly.
Pair Corralation between Lantern Pharma and INmune Bio
Given the investment horizon of 90 days Lantern Pharma is expected to generate 1.35 times more return on investment than INmune Bio. However, Lantern Pharma is 1.35 times more volatile than INmune Bio. It trades about -0.14 of its potential returns per unit of risk. INmune Bio is currently generating about -0.27 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lantern Pharma vs. INmune Bio
Performance |
| Timeline |
| Lantern Pharma |
| INmune Bio |
Lantern Pharma and INmune Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantern Pharma and INmune Bio
The main advantage of trading using opposite Lantern Pharma and INmune Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantern Pharma position performs unexpectedly, INmune Bio 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 INmune Bio will offset losses from the drop in INmune Bio's long position.| Lantern Pharma vs. Tff Pharmaceuticals | Lantern Pharma vs. Generation Bio Co | Lantern Pharma vs. Lyra Therapeutics | Lantern Pharma vs. Immunome |
| INmune Bio vs. Tff Pharmaceuticals | INmune Bio vs. Anebulo Pharmaceuticals | INmune Bio vs. AN2 Therapeutics | INmune Bio vs. Cue Biopharma |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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