Correlation Between Centessa Pharmaceuticals and INTNED

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

By analyzing existing cross correlation between Centessa Pharmaceuticals PLC and INTNED 4625 06 JAN 26, you can compare the effects of market volatilities on Centessa Pharmaceuticals and INTNED 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 Centessa Pharmaceuticals with a short position of INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centessa Pharmaceuticals and INTNED.

Diversification Opportunities for Centessa Pharmaceuticals and INTNED

0.0

Correlation Coefficient

Centessa Pharmaceuticals  INTNED

Pay attention - limited upside

The 3 months correlation between Centessa and INTNED is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Centessa Pharmaceuticals PLC and INTNED 4625 06 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 4625 06 and Centessa Pharmaceuticals 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 Centessa Pharmaceuticals PLC are associated (or correlated) with INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 4625 06 has no effect on the direction of Centessa Pharmaceuticals i.e., Centessa Pharmaceuticals and INTNED go up and down completely randomly.

Pair Corralation between Centessa Pharmaceuticals and INTNED

If you would invest  656.00  in Centessa Pharmaceuticals PLC on October 4, 2024 and sell it today you would earn a total of  1,094  from holding Centessa Pharmaceuticals PLC or generate 166.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Centessa Pharmaceuticals PLC  vs.  INTNED 4625 06 JAN 26

Centessa Pharmaceuticals

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Centessa Pharmaceuticals PLC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Centessa Pharmaceuticals sustained solid returns over the last few months and may actually be approaching a breakup point.

INTNED 4625 06

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days INTNED 4625 06 JAN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Centessa Pharmaceuticals and INTNED

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

The idea behind Centessa Pharmaceuticals PLC and INTNED 4625 06 JAN 26 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.