Correlation Between MannKind Corp and Replimune
Can any of the company-specific risk be diversified away by investing in both MannKind Corp and Replimune 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 MannKind Corp and Replimune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MannKind Corp and Replimune Group, you can compare the effects of market volatilities on MannKind Corp and Replimune 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 MannKind Corp with a short position of Replimune. Check out your portfolio center. Please also check ongoing floating volatility patterns of MannKind Corp and Replimune.
Diversification Opportunities for MannKind Corp and Replimune
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MannKind and Replimune is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding MannKind Corp and Replimune Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Replimune Group and MannKind Corp 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 MannKind Corp are associated (or correlated) with Replimune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Replimune Group has no effect on the direction of MannKind Corp i.e., MannKind Corp and Replimune go up and down completely randomly.
Pair Corralation between MannKind Corp and Replimune
Given the investment horizon of 90 days MannKind Corp is expected to under-perform the Replimune. But the stock apears to be less risky and, when comparing its historical volatility, MannKind Corp is 3.5 times less risky than Replimune. The stock trades about -0.16 of its potential returns per unit of risk. The Replimune Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,211 in Replimune Group on November 1, 2024 and sell it today you would earn a total of 196.00 from holding Replimune Group or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MannKind Corp vs. Replimune Group
Performance |
| Timeline |
| MannKind Corp |
| Replimune Group |
MannKind Corp and Replimune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MannKind Corp and Replimune
The main advantage of trading using opposite MannKind Corp and Replimune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MannKind Corp position performs unexpectedly, Replimune 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 Replimune will offset losses from the drop in Replimune's long position.| MannKind Corp vs. Biomarin Pharmaceutical | MannKind Corp vs. Vaxcyte | MannKind Corp vs. Liquidia Technologies | MannKind Corp vs. Legend Biotech Corp |
| Replimune vs. Nuvalent | Replimune vs. Ventyx Biosciences | Replimune vs. Ascendis Pharma AS | Replimune vs. United Therapeutics |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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