Correlation Between Lantern Pharma and NuCana PLC
Can any of the company-specific risk be diversified away by investing in both Lantern Pharma and NuCana PLC 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 NuCana PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lantern Pharma and NuCana PLC, you can compare the effects of market volatilities on Lantern Pharma and NuCana PLC 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 NuCana PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantern Pharma and NuCana PLC.
Diversification Opportunities for Lantern Pharma and NuCana PLC
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lantern and NuCana is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lantern Pharma and NuCana PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuCana PLC 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 NuCana PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuCana PLC has no effect on the direction of Lantern Pharma i.e., Lantern Pharma and NuCana PLC go up and down completely randomly.
Pair Corralation between Lantern Pharma and NuCana PLC
Given the investment horizon of 90 days Lantern Pharma is expected to generate 0.88 times more return on investment than NuCana PLC. However, Lantern Pharma is 1.14 times less risky than NuCana PLC. It trades about -0.12 of its potential returns per unit of risk. NuCana PLC is currently generating about -0.11 per unit of risk. If you would invest 470.00 in Lantern Pharma on November 29, 2024 and sell it today you would lose (58.00) from holding Lantern Pharma or give up 12.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lantern Pharma vs. NuCana PLC
Performance |
| Timeline |
| Lantern Pharma |
| NuCana PLC |
Lantern Pharma and NuCana PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantern Pharma and NuCana PLC
The main advantage of trading using opposite Lantern Pharma and NuCana PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantern Pharma position performs unexpectedly, NuCana PLC 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 NuCana PLC will offset losses from the drop in NuCana PLC's long position.| Lantern Pharma vs. Beam Therapeutics | Lantern Pharma vs. Editas Medicine | Lantern Pharma vs. Caribou Biosciences | Lantern Pharma vs. Verve Therapeutics |
| NuCana PLC vs. Zura Bio Limited | NuCana PLC vs. ZyVersa Therapeutics | NuCana PLC vs. Cidara Therapeutics | NuCana PLC vs. Silence Therapeutics PLC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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