Correlation Between Enlivex Therapeutics and Enliven Therapeutics

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

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

Diversification Opportunities for Enlivex Therapeutics and Enliven Therapeutics

0.58

Correlation Coefficient

Enlivex Therapeutics  Enliven Therapeutics

Very weak diversification

The 3 months correlation between Enlivex and Enliven is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Enlivex Therapeutics and Enliven Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enliven Therapeutics 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 Enliven Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enliven Therapeutics has no effect on the direction of Enlivex Therapeutics i.e., Enlivex Therapeutics and Enliven Therapeutics go up and down completely randomly.

Pair Corralation between Enlivex Therapeutics and Enliven Therapeutics

Given the investment horizon of 90 days Enlivex Therapeutics is expected to under-perform the Enliven Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Enlivex Therapeutics is 1.11 times less risky than Enliven Therapeutics. The stock trades about -0.06 of its potential returns per unit of risk. The Enliven Therapeutics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,442  in Enliven Therapeutics on October 9, 2024 and sell it today you would earn a total of  45.00  from holding Enliven Therapeutics or generate 1.84% return on investment over 90 days.

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

Enlivex Therapeutics  vs.  Enliven Therapeutics

Enlivex Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enlivex Therapeutics 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 essential indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Enliven Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enliven Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Enlivex Therapeutics and Enliven Therapeutics

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

The idea behind Enlivex Therapeutics and Enliven Therapeutics 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.