Correlation Between Lantern Pharma and Instil Bio
Can any of the company-specific risk be diversified away by investing in both Lantern Pharma and Instil 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 Instil 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 Instil Bio, you can compare the effects of market volatilities on Lantern Pharma and Instil 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 Instil Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lantern Pharma and Instil Bio.
Diversification Opportunities for Lantern Pharma and Instil Bio
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lantern and Instil is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lantern Pharma and Instil Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Instil 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 Instil Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Instil Bio has no effect on the direction of Lantern Pharma i.e., Lantern Pharma and Instil Bio go up and down completely randomly.
Pair Corralation between Lantern Pharma and Instil Bio
Given the investment horizon of 90 days Lantern Pharma is expected to under-perform the Instil Bio. But the stock apears to be less risky and, when comparing its historical volatility, Lantern Pharma is 3.99 times less risky than Instil Bio. The stock trades about -0.03 of its potential returns per unit of risk. The Instil Bio is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,393 in Instil Bio on September 3, 2024 and sell it today you would earn a total of 1,298 from holding Instil Bio or generate 93.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lantern Pharma vs. Instil Bio
Performance |
| Timeline |
| Lantern Pharma |
| Instil Bio |
Lantern Pharma and Instil Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lantern Pharma and Instil Bio
The main advantage of trading using opposite Lantern Pharma and Instil Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantern Pharma position performs unexpectedly, Instil 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 Instil Bio will offset losses from the drop in Instil Bio's long position.| Lantern Pharma vs. Tff Pharmaceuticals | Lantern Pharma vs. Generation Bio Co | Lantern Pharma vs. Lyra Therapeutics | Lantern Pharma vs. Immunome |
| Instil Bio vs. DiaMedica Therapeutics | Instil Bio vs. Lyra Therapeutics | Instil Bio vs. Centessa Pharmaceuticals 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |