Correlation Between Algernon Pharmaceuticals and ImmuCell
Can any of the company-specific risk be diversified away by investing in both Algernon Pharmaceuticals and ImmuCell 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 Algernon Pharmaceuticals and ImmuCell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Algernon Pharmaceuticals and ImmuCell, you can compare the effects of market volatilities on Algernon Pharmaceuticals and ImmuCell 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 Algernon Pharmaceuticals with a short position of ImmuCell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algernon Pharmaceuticals and ImmuCell.
Diversification Opportunities for Algernon Pharmaceuticals and ImmuCell
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Algernon and ImmuCell is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Algernon Pharmaceuticals and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and Algernon Pharmaceuticals 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 Algernon Pharmaceuticals are associated (or correlated) with ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of Algernon Pharmaceuticals i.e., Algernon Pharmaceuticals and ImmuCell go up and down completely randomly.
Pair Corralation between Algernon Pharmaceuticals and ImmuCell
Assuming the 90 days horizon Algernon Pharmaceuticals is expected to under-perform the ImmuCell. In addition to that, Algernon Pharmaceuticals is 3.8 times more volatile than ImmuCell. It trades about -0.01 of its total potential returns per unit of risk. ImmuCell is currently generating about 0.02 per unit of volatility. If you would invest 365.00 in ImmuCell on August 25, 2024 and sell it today you would earn a total of 4.00 from holding ImmuCell or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Algernon Pharmaceuticals vs. ImmuCell
Performance |
| Timeline |
| Algernon Pharmaceuticals |
| ImmuCell |
Algernon Pharmaceuticals and ImmuCell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Algernon Pharmaceuticals and ImmuCell
The main advantage of trading using opposite Algernon Pharmaceuticals and ImmuCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algernon Pharmaceuticals position performs unexpectedly, ImmuCell 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 ImmuCell will offset losses from the drop in ImmuCell's long position.The idea behind Algernon Pharmaceuticals and ImmuCell 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.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |