Correlation Between Enlivex Therapeutics and AnGes

Can any of the company-specific risk be diversified away by investing in both Enlivex Therapeutics and AnGes 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 Enlivex Therapeutics and AnGes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enlivex Therapeutics and AnGes Inc, you can compare the effects of market volatilities on Enlivex Therapeutics and AnGes 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 Enlivex Therapeutics with a short position of AnGes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlivex Therapeutics and AnGes.

Diversification Opportunities for Enlivex Therapeutics and AnGes

0.21

Correlation Coefficient

Enlivex Therapeutics  AnGes

Modest diversification

The 3 months correlation between Enlivex and AnGes is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Enlivex Therapeutics and AnGes Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnGes Inc and Enlivex Therapeutics 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 Enlivex Therapeutics are associated (or correlated) with AnGes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnGes Inc has no effect on the direction of Enlivex Therapeutics i.e., Enlivex Therapeutics and AnGes go up and down completely randomly.

Pair Corralation between Enlivex Therapeutics and AnGes

Given the investment horizon of 90 days Enlivex Therapeutics is expected to under-perform the AnGes. In addition to that, Enlivex Therapeutics is 1.23 times more volatile than AnGes Inc. It trades about -0.07 of its total potential returns per unit of risk. AnGes Inc is currently generating about 0.04 per unit of volatility. If you would invest  46.00  in AnGes Inc on June 22, 2024 and sell it today you would earn a total of  8.00  from holding AnGes Inc or generate 17.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Enlivex Therapeutics  vs.  AnGes Inc

Enlivex Therapeutics

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Enlivex Therapeutics are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Enlivex Therapeutics may actually be approaching a critical reversion point that can send shares even higher in October 2024.

AnGes Inc

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AnGes Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, AnGes reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enlivex Therapeutics and AnGes

The main advantage of trading using opposite Enlivex Therapeutics and AnGes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlivex Therapeutics position performs unexpectedly, AnGes 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 AnGes will offset losses from the drop in AnGes' long position.

The idea behind Enlivex Therapeutics and AnGes Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.