Correlation Between Sellas Life and Innate Pharma
Can any of the company-specific risk be diversified away by investing in both Sellas Life and Innate Pharma 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 Sellas Life and Innate Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sellas Life Sciences and Innate Pharma, you can compare the effects of market volatilities on Sellas Life and Innate Pharma 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 Sellas Life with a short position of Innate Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sellas Life and Innate Pharma.
Diversification Opportunities for Sellas Life and Innate Pharma
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sellas and Innate is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sellas Life Sciences and Innate Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innate Pharma and Sellas Life 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 Sellas Life Sciences are associated (or correlated) with Innate Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innate Pharma has no effect on the direction of Sellas Life i.e., Sellas Life and Innate Pharma go up and down completely randomly.
Pair Corralation between Sellas Life and Innate Pharma
Considering the 90-day investment horizon Sellas Life Sciences is expected to generate 0.82 times more return on investment than Innate Pharma. However, Sellas Life Sciences is 1.22 times less risky than Innate Pharma. It trades about -0.02 of its potential returns per unit of risk. Innate Pharma is currently generating about -0.08 per unit of risk. If you would invest 140.00 in Sellas Life Sciences on August 28, 2024 and sell it today you would lose (23.00) from holding Sellas Life Sciences or give up 16.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sellas Life Sciences vs. Innate Pharma
Performance |
| Timeline |
| Sellas Life Sciences |
| Innate Pharma |
Sellas Life and Innate Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sellas Life and Innate Pharma
The main advantage of trading using opposite Sellas Life and Innate Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sellas Life position performs unexpectedly, Innate Pharma 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 Innate Pharma will offset losses from the drop in Innate Pharma's long position.| Sellas Life vs. NLS Pharmaceutics AG | Sellas Life vs. Mereo BioPharma Group | Sellas Life vs. Day One Biopharmaceuticals | Sellas Life vs. Reviva Pharmaceuticals Holdings |
| Innate Pharma vs. Eliem Therapeutics | Innate Pharma vs. HCW Biologics | Innate Pharma vs. Inhibrx | Innate Pharma 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |