Correlation Between Enlivex Therapeutics and EnGene Holdings

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

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

Diversification Opportunities for Enlivex Therapeutics and EnGene Holdings

0.35

Correlation Coefficient

Enlivex Therapeutics  EnGene Holdings

Weak diversification

The 3 months correlation between Enlivex and EnGene is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Enlivex Therapeutics and enGene Holdings Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enGene Holdings Common 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 EnGene Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enGene Holdings Common has no effect on the direction of Enlivex Therapeutics i.e., Enlivex Therapeutics and EnGene Holdings go up and down completely randomly.

Pair Corralation between Enlivex Therapeutics and EnGene Holdings

Given the investment horizon of 90 days Enlivex Therapeutics is expected to generate 0.43 times more return on investment than EnGene Holdings. However, Enlivex Therapeutics is 2.32 times less risky than EnGene Holdings. It trades about -0.03 of its potential returns per unit of risk. enGene Holdings Common is currently generating about -0.02 per unit of risk. If you would invest  115.00  in Enlivex Therapeutics on December 29, 2024 and sell it today you would lose (14.00) from holding Enlivex Therapeutics or give up 12.17% of portfolio value over 90 days.

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

Enlivex Therapeutics  vs.  enGene Holdings Common

Enlivex Therapeutics

Risk-Adjusted Performance

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 latest weak performance, the Stock's essential indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

enGene Holdings Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days enGene Holdings Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Etf's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with Enlivex Therapeutics and EnGene Holdings

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

The idea behind Enlivex Therapeutics and enGene Holdings Common 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.