Correlation Between Affimed NV and Immix Biopharma
Can any of the company-specific risk be diversified away by investing in both Affimed NV and Immix Biopharma 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 Affimed NV and Immix Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affimed NV and Immix Biopharma, you can compare the effects of market volatilities on Affimed NV and Immix Biopharma 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 Affimed NV with a short position of Immix Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affimed NV and Immix Biopharma.
Diversification Opportunities for Affimed NV and Immix Biopharma
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Affimed and Immix is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Affimed NV and Immix Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immix Biopharma and Affimed NV 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 Affimed NV are associated (or correlated) with Immix Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immix Biopharma has no effect on the direction of Affimed NV i.e., Affimed NV and Immix Biopharma go up and down completely randomly.
Pair Corralation between Affimed NV and Immix Biopharma
Given the investment horizon of 90 days Affimed NV is expected to under-perform the Immix Biopharma. In addition to that, Affimed NV is 1.17 times more volatile than Immix Biopharma. It trades about -0.13 of its total potential returns per unit of risk. Immix Biopharma is currently generating about 0.01 per unit of volatility. If you would invest 168.00 in Immix Biopharma on August 29, 2024 and sell it today you would lose (3.00) from holding Immix Biopharma or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affimed NV vs. Immix Biopharma
Performance |
| Timeline |
| Affimed NV |
| Immix Biopharma |
Affimed NV and Immix Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affimed NV and Immix Biopharma
The main advantage of trading using opposite Affimed NV and Immix Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affimed NV position performs unexpectedly, Immix Biopharma 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 Immix Biopharma will offset losses from the drop in Immix Biopharma's long position.| Affimed NV vs. Bright Minds Biosciences | Affimed NV vs. HP Inc | Affimed NV vs. Intel | Affimed NV vs. Chevron Corp |
| Immix Biopharma vs. Bright Minds Biosciences | Immix Biopharma vs. HP Inc | Immix Biopharma vs. Intel | Immix Biopharma vs. Chevron Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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