Correlation Between SAB Biotherapeutics and Enlivex Therapeutics

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

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

Diversification Opportunities for SAB Biotherapeutics and Enlivex Therapeutics

0.5

Correlation Coefficient

SAB Biotherapeutics  Enlivex Therapeutics

Very weak diversification

The 3 months correlation between SAB and Enlivex is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding SAB Biotherapeutics and Enlivex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlivex Therapeutics and SAB Biotherapeutics 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 SAB Biotherapeutics are associated (or correlated) with Enlivex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlivex Therapeutics has no effect on the direction of SAB Biotherapeutics i.e., SAB Biotherapeutics and Enlivex Therapeutics go up and down completely randomly.

Pair Corralation between SAB Biotherapeutics and Enlivex Therapeutics

Given the investment horizon of 90 days SAB Biotherapeutics is expected to under-perform the Enlivex Therapeutics. In addition to that, SAB Biotherapeutics is 1.33 times more volatile than Enlivex Therapeutics. It trades about -0.04 of its total potential returns per unit of risk. Enlivex Therapeutics is currently generating about 0.01 per unit of volatility. If you would invest  108.00  in Enlivex Therapeutics on February 3, 2025 and sell it today you would lose (4.00) from holding Enlivex Therapeutics or give up 3.7% of portfolio value over 90 days.

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

SAB Biotherapeutics  vs.  Enlivex Therapeutics

SAB Biotherapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days SAB Biotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in June 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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 fairly stable essential indicators, Enlivex Therapeutics is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with SAB Biotherapeutics and Enlivex Therapeutics

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

The idea behind SAB Biotherapeutics and Enlivex 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.