Correlation Between Can Fite and InMed Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Can Fite and InMed Pharmaceuticals 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 Can Fite and InMed Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Can Fite Biopharma and InMed Pharmaceuticals, you can compare the effects of market volatilities on Can Fite and InMed Pharmaceuticals 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 Can Fite with a short position of InMed Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Can Fite and InMed Pharmaceuticals.
Diversification Opportunities for Can Fite and InMed Pharmaceuticals
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Can and InMed is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Can Fite Biopharma and InMed Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InMed Pharmaceuticals and Can Fite 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 Can Fite Biopharma are associated (or correlated) with InMed Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InMed Pharmaceuticals has no effect on the direction of Can Fite i.e., Can Fite and InMed Pharmaceuticals go up and down completely randomly.
Pair Corralation between Can Fite and InMed Pharmaceuticals
Given the investment horizon of 90 days Can Fite Biopharma is expected to under-perform the InMed Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Can Fite Biopharma is 1.23 times less risky than InMed Pharmaceuticals. The stock trades about -0.32 of its potential returns per unit of risk. The InMed Pharmaceuticals is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 230.00 in InMed Pharmaceuticals on August 17, 2025 and sell it today you would lose (59.00) from holding InMed Pharmaceuticals or give up 25.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Can Fite Biopharma vs. InMed Pharmaceuticals
Performance |
| Timeline |
| Can Fite Biopharma |
| InMed Pharmaceuticals |
Can Fite and InMed Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Can Fite and InMed Pharmaceuticals
The main advantage of trading using opposite Can Fite and InMed Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fite position performs unexpectedly, InMed Pharmaceuticals 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 InMed Pharmaceuticals will offset losses from the drop in InMed Pharmaceuticals' long position.| Can Fite vs. Kazia Therapeutics Ltd | Can Fite vs. Cns Pharmaceuticals | Can Fite vs. Clearmind Medicine Common | Can Fite vs. Soligenix |
| InMed Pharmaceuticals vs. Biodexa Pharmaceticals | InMed Pharmaceuticals vs. Genprex | InMed Pharmaceuticals vs. Biovie Inc | InMed Pharmaceuticals vs. Galmed Pharmaceuticals |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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