Correlation Between AC Immune and Histogen
Can any of the company-specific risk be diversified away by investing in both AC Immune and Histogen 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 AC Immune and Histogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AC Immune and Histogen, you can compare the effects of market volatilities on AC Immune and Histogen 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 AC Immune with a short position of Histogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of AC Immune and Histogen.
Diversification Opportunities for AC Immune and Histogen
Poor diversification
The 3 months correlation between ACIU and Histogen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding AC Immune and Histogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Histogen and AC Immune 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 AC Immune are associated (or correlated) with Histogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Histogen has no effect on the direction of AC Immune i.e., AC Immune and Histogen go up and down completely randomly.
Pair Corralation between AC Immune and Histogen
Given the investment horizon of 90 days AC Immune is expected to under-perform the Histogen. But the stock apears to be less risky and, when comparing its historical volatility, AC Immune is 2.15 times less risky than Histogen. The stock trades about -0.1 of its potential returns per unit of risk. The Histogen is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2.77 in Histogen on November 9, 2024 and sell it today you would lose (0.07) from holding Histogen or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.0% |
| Values | Daily Returns |
AC Immune vs. Histogen
Performance |
| Timeline |
| AC Immune |
| Histogen |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
AC Immune and Histogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AC Immune and Histogen
The main advantage of trading using opposite AC Immune and Histogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AC Immune position performs unexpectedly, Histogen 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 Histogen will offset losses from the drop in Histogen's long position.| AC Immune vs. Pmv Pharmaceuticals | AC Immune vs. MediciNova | AC Immune vs. Pharvaris BV | AC Immune vs. PepGen |
| Histogen vs. Virax Biolabs Group | Histogen vs. Artelo Biosciences | Histogen vs. Curis Inc | Histogen vs. SAB Biotherapeutics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets |