Correlation Between MAIA Biotechnology and Enlivex Therapeutics
Can any of the company-specific risk be diversified away by investing in both MAIA Biotechnology 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 MAIA Biotechnology and Enlivex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAIA Biotechnology and Enlivex Therapeutics, you can compare the effects of market volatilities on MAIA Biotechnology 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 MAIA Biotechnology with a short position of Enlivex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAIA Biotechnology and Enlivex Therapeutics.
Diversification Opportunities for MAIA Biotechnology and Enlivex Therapeutics
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MAIA and Enlivex is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding MAIA Biotechnology and Enlivex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlivex Therapeutics and MAIA Biotechnology 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 MAIA Biotechnology 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 MAIA Biotechnology i.e., MAIA Biotechnology and Enlivex Therapeutics go up and down completely randomly.
Pair Corralation between MAIA Biotechnology and Enlivex Therapeutics
Given the investment horizon of 90 days MAIA Biotechnology is expected to generate 1.68 times more return on investment than Enlivex Therapeutics. However, MAIA Biotechnology is 1.68 times more volatile than Enlivex Therapeutics. It trades about -0.13 of its potential returns per unit of risk. Enlivex Therapeutics is currently generating about -0.7 per unit of risk. If you would invest 266.00 in MAIA Biotechnology on August 24, 2024 and sell it today you would lose (51.00) from holding MAIA Biotechnology or give up 19.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAIA Biotechnology vs. Enlivex Therapeutics
Performance |
| Timeline |
| MAIA Biotechnology |
| Enlivex Therapeutics |
MAIA Biotechnology and Enlivex Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAIA Biotechnology and Enlivex Therapeutics
The main advantage of trading using opposite MAIA Biotechnology and Enlivex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAIA Biotechnology 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.| MAIA Biotechnology vs. Lineage Cell Therapeutics | MAIA Biotechnology vs. Armata Pharmaceuticals | MAIA Biotechnology vs. Portage Biotech | MAIA Biotechnology vs. Larimar Therapeutics |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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