Correlation Between Pulmatrix and Lixte Biotechnology
Can any of the company-specific risk be diversified away by investing in both Pulmatrix and Lixte Biotechnology 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 Pulmatrix and Lixte Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pulmatrix and Lixte Biotechnology Holdings, you can compare the effects of market volatilities on Pulmatrix and Lixte Biotechnology 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 Pulmatrix with a short position of Lixte Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pulmatrix and Lixte Biotechnology.
Diversification Opportunities for Pulmatrix and Lixte Biotechnology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pulmatrix and Lixte is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Pulmatrix and Lixte Biotechnology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixte Biotechnology and Pulmatrix 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 Pulmatrix are associated (or correlated) with Lixte Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixte Biotechnology has no effect on the direction of Pulmatrix i.e., Pulmatrix and Lixte Biotechnology go up and down completely randomly.
Pair Corralation between Pulmatrix and Lixte Biotechnology
Given the investment horizon of 90 days Pulmatrix is expected to generate 0.92 times more return on investment than Lixte Biotechnology. However, Pulmatrix is 1.09 times less risky than Lixte Biotechnology. It trades about 0.12 of its potential returns per unit of risk. Lixte Biotechnology Holdings is currently generating about 0.04 per unit of risk. If you would invest 174.00 in Pulmatrix on November 3, 2024 and sell it today you would earn a total of 596.00 from holding Pulmatrix or generate 342.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Pulmatrix vs. Lixte Biotechnology Holdings
Performance |
| Timeline |
| Pulmatrix |
| Lixte Biotechnology |
Pulmatrix and Lixte Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pulmatrix and Lixte Biotechnology
The main advantage of trading using opposite Pulmatrix and Lixte Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pulmatrix position performs unexpectedly, Lixte Biotechnology 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 Lixte Biotechnology will offset losses from the drop in Lixte Biotechnology's long position.| Pulmatrix vs. Capricor Therapeutics | Pulmatrix vs. Akari Therapeutics PLC | Pulmatrix vs. Soleno Therapeutics | Pulmatrix vs. Bio Path Holdings |
| Lixte Biotechnology vs. Allarity Therapeutics | Lixte Biotechnology vs. Virax Biolabs Group | Lixte Biotechnology vs. Quoin Pharmaceuticals Ltd | Lixte Biotechnology vs. Indaptus 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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