Correlation Between Coya Therapeutics, and Lantern Pharma

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

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

Diversification Opportunities for Coya Therapeutics, and Lantern Pharma

-0.04

Correlation Coefficient

Coya Therapeutics,  Lantern Pharma

Good diversification

The 3 months correlation between Coya and Lantern is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Coya Therapeutics, Common and Lantern Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lantern Pharma and Coya 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 Coya Therapeutics, Common are associated (or correlated) with Lantern Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lantern Pharma has no effect on the direction of Coya Therapeutics, i.e., Coya Therapeutics, and Lantern Pharma go up and down completely randomly.

Pair Corralation between Coya Therapeutics, and Lantern Pharma

Given the investment horizon of 90 days Coya Therapeutics, Common is expected to generate 1.02 times more return on investment than Lantern Pharma. However, Coya Therapeutics, is 1.02 times more volatile than Lantern Pharma. It trades about 0.01 of its potential returns per unit of risk. Lantern Pharma is currently generating about -0.01 per unit of risk. If you would invest  590.00  in Coya Therapeutics, Common on September 22, 2024 and sell it today you would lose (66.00) from holding Coya Therapeutics, Common or give up 11.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Coya Therapeutics, Common  vs.  Lantern Pharma

Coya Therapeutics, Common

Risk-Adjusted Performance

0 of 100

Very Weak

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

Lantern Pharma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lantern Pharma has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Coya Therapeutics, and Lantern Pharma

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

The idea behind Coya Therapeutics, Common and Lantern Pharma 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.