Correlation Between Lumos Pharma and Transgene
Can any of the company-specific risk be diversified away by investing in both Lumos Pharma and Transgene 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 Transgene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumos Pharma and Transgene SA, you can compare the effects of market volatilities on Lumos Pharma and Transgene 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 Transgene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumos Pharma and Transgene.
Diversification Opportunities for Lumos Pharma and Transgene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lumos and Transgene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lumos Pharma and Transgene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transgene SA 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 Transgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transgene SA has no effect on the direction of Lumos Pharma i.e., Lumos Pharma and Transgene go up and down completely randomly.
Pair Corralation between Lumos Pharma and Transgene
Given the investment horizon of 90 days Lumos Pharma is expected to generate 12.4 times less return on investment than Transgene. But when comparing it to its historical volatility, Lumos Pharma is 9.69 times less risky than Transgene. It trades about 0.03 of its potential returns per unit of risk. Transgene SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Transgene SA on November 4, 2024 and sell it today you would earn a total of 158.00 from holding Transgene SA or generate 15800.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.15% |
| Values | Daily Returns |
Lumos Pharma vs. Transgene SA
Performance |
| Timeline |
| Lumos Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Transgene SA |
Lumos Pharma and Transgene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumos Pharma and Transgene
The main advantage of trading using opposite Lumos Pharma and Transgene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumos Pharma position performs unexpectedly, Transgene 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 Transgene will offset losses from the drop in Transgene's long position.| Lumos Pharma vs. Shattuck Labs | Lumos Pharma vs. Champions Oncology | Lumos Pharma vs. Century Therapeutics | Lumos Pharma vs. Silo Pharma |
| Transgene vs. ANTA Sports Products | Transgene vs. Lindblad Expeditions Holdings | Transgene vs. Toro | Transgene vs. Hasbro Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |