Correlation Between Lumos Pharma and Enlivex Therapeutics
Can any of the company-specific risk be diversified away by investing in both Lumos Pharma and Enlivex 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 Lumos Pharma and Enlivex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumos Pharma and Enlivex Therapeutics, you can compare the effects of market volatilities on Lumos Pharma and Enlivex 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 Lumos Pharma with a short position of Enlivex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumos Pharma and Enlivex Therapeutics.
Diversification Opportunities for Lumos Pharma and Enlivex Therapeutics
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lumos and Enlivex is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lumos Pharma and Enlivex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlivex Therapeutics and Lumos 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 Lumos Pharma are associated (or correlated) with Enlivex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlivex Therapeutics has no effect on the direction of Lumos Pharma i.e., Lumos Pharma and Enlivex Therapeutics go up and down completely randomly.
Pair Corralation between Lumos Pharma and Enlivex Therapeutics
If you would invest 434.00 in Lumos Pharma on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Lumos Pharma or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Lumos Pharma vs. Enlivex Therapeutics
Performance |
| Timeline |
| Lumos Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enlivex Therapeutics |
Lumos Pharma and Enlivex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumos Pharma and Enlivex Therapeutics
The main advantage of trading using opposite Lumos Pharma and Enlivex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumos Pharma position performs unexpectedly, Enlivex 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 Enlivex Therapeutics will offset losses from the drop in Enlivex Therapeutics' long position.| Lumos Pharma vs. Shattuck Labs | Lumos Pharma vs. Champions Oncology | Lumos Pharma vs. Century Therapeutics | Lumos Pharma vs. Silo Pharma |
| Enlivex Therapeutics vs. Pluri Inc | Enlivex Therapeutics vs. BioLineRx | Enlivex Therapeutics vs. Purple Biotech | Enlivex Therapeutics vs. Histogen |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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