Correlation Between MediciNova and Marker Therapeutics
Can any of the company-specific risk be diversified away by investing in both MediciNova and Marker 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 MediciNova and Marker Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediciNova and Marker Therapeutics, you can compare the effects of market volatilities on MediciNova and Marker 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 MediciNova with a short position of Marker Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediciNova and Marker Therapeutics.
Diversification Opportunities for MediciNova and Marker Therapeutics
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MediciNova and Marker is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding MediciNova and Marker Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marker Therapeutics and MediciNova 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 MediciNova are associated (or correlated) with Marker Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marker Therapeutics has no effect on the direction of MediciNova i.e., MediciNova and Marker Therapeutics go up and down completely randomly.
Pair Corralation between MediciNova and Marker Therapeutics
Given the investment horizon of 90 days MediciNova is expected to generate 0.47 times more return on investment than Marker Therapeutics. However, MediciNova is 2.14 times less risky than Marker Therapeutics. It trades about -0.05 of its potential returns per unit of risk. Marker Therapeutics is currently generating about -0.12 per unit of risk. If you would invest 201.00 in MediciNova on November 27, 2024 and sell it today you would lose (25.00) from holding MediciNova or give up 12.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MediciNova vs. Marker Therapeutics
Performance |
| Timeline |
| MediciNova |
| Marker Therapeutics |
MediciNova and Marker Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediciNova and Marker Therapeutics
The main advantage of trading using opposite MediciNova and Marker Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediciNova position performs unexpectedly, Marker 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 Marker Therapeutics will offset losses from the drop in Marker Therapeutics' long position.| MediciNova vs. Aerovate Therapeutics | MediciNova vs. Adagene | MediciNova vs. Acrivon Therapeutics, Common | MediciNova vs. Rezolute |
| Marker Therapeutics vs. Exicure | Marker Therapeutics vs. Protagenic Therapeutics | Marker Therapeutics vs. Pmv Pharmaceuticals | Marker Therapeutics vs. Anebulo Pharmaceuticals |
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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