Correlation Between Longeveron LLC and RenovoRx

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

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

Diversification Opportunities for Longeveron LLC and RenovoRx

-0.11

Correlation Coefficient

Longeveron LLC  RenovoRx

Good diversification

The 3 months correlation between Longeveron and RenovoRx is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Longeveron LLC and RenovoRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RenovoRx and Longeveron LLC 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 Longeveron LLC are associated (or correlated) with RenovoRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RenovoRx has no effect on the direction of Longeveron LLC i.e., Longeveron LLC and RenovoRx go up and down completely randomly.

Pair Corralation between Longeveron LLC and RenovoRx

Given the investment horizon of 90 days Longeveron LLC is expected to generate 7.71 times less return on investment than RenovoRx. But when comparing it to its historical volatility, Longeveron LLC is 1.4 times less risky than RenovoRx. It trades about 0.02 of its potential returns per unit of risk. RenovoRx is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  102.00  in RenovoRx on September 1, 2024 and sell it today you would earn a total of  25.00  from holding RenovoRx or generate 24.51% return on investment over 90 days.

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

Longeveron LLC  vs.  RenovoRx

Longeveron LLC

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Longeveron LLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Longeveron LLC is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

RenovoRx

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in RenovoRx are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, RenovoRx unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Longeveron LLC and RenovoRx

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

The idea behind Longeveron LLC and RenovoRx 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.