Correlation Between Mivne Real and Cannassure Therapeutics

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

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

Diversification Opportunities for Mivne Real and Cannassure Therapeutics

-0.86

Correlation Coefficient

Mivne Real  Cannassure Therapeutics

Pay attention - limited upside

The 3 months correlation between Mivne and Cannassure is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mivne Real Estate and Cannassure Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannassure Therapeutics and Mivne Real 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 Mivne Real Estate are associated (or correlated) with Cannassure Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannassure Therapeutics has no effect on the direction of Mivne Real i.e., Mivne Real and Cannassure Therapeutics go up and down completely randomly.

Pair Corralation between Mivne Real and Cannassure Therapeutics

Assuming the 90 days trading horizon Mivne Real Estate is expected to under-perform the Cannassure Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Mivne Real Estate is 6.82 times less risky than Cannassure Therapeutics. The stock trades about -0.08 of its potential returns per unit of risk. The Cannassure Therapeutics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  84,990  in Cannassure Therapeutics on October 7, 2024 and sell it today you would earn a total of  10.00  from holding Cannassure Therapeutics or generate 0.01% return on investment over 90 days.

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

Mivne Real Estate  vs.  Cannassure Therapeutics

Mivne Real Estate

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mivne Real Estate are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mivne Real sustained solid returns over the last few months and may actually be approaching a breakup point.

Cannassure Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cannassure 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 basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Mivne Real and Cannassure Therapeutics

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

The idea behind Mivne Real Estate and Cannassure 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 Valuation module to check real value of public entities based on technical and fundamental data.