Correlation Between AN2 Therapeutics and Immuneering Corp
Can any of the company-specific risk be diversified away by investing in both AN2 Therapeutics and Immuneering Corp 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 AN2 Therapeutics and Immuneering Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AN2 Therapeutics and Immuneering Corp, you can compare the effects of market volatilities on AN2 Therapeutics and Immuneering Corp 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 AN2 Therapeutics with a short position of Immuneering Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AN2 Therapeutics and Immuneering Corp.
Diversification Opportunities for AN2 Therapeutics and Immuneering Corp
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between AN2 and Immuneering is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AN2 Therapeutics and Immuneering Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuneering Corp and AN2 Therapeutics 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 AN2 Therapeutics are associated (or correlated) with Immuneering Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuneering Corp has no effect on the direction of AN2 Therapeutics i.e., AN2 Therapeutics and Immuneering Corp go up and down completely randomly.
Pair Corralation between AN2 Therapeutics and Immuneering Corp
Given the investment horizon of 90 days AN2 Therapeutics is expected to generate 14.64 times less return on investment than Immuneering Corp. But when comparing it to its historical volatility, AN2 Therapeutics is 1.23 times less risky than Immuneering Corp. It trades about 0.01 of its potential returns per unit of risk. Immuneering Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 138.00 in Immuneering Corp on August 28, 2024 and sell it today you would earn a total of 70.00 from holding Immuneering Corp or generate 50.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AN2 Therapeutics vs. Immuneering Corp
Performance |
| Timeline |
| AN2 Therapeutics |
| Immuneering Corp |
AN2 Therapeutics and Immuneering Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AN2 Therapeutics and Immuneering Corp
The main advantage of trading using opposite AN2 Therapeutics and Immuneering Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AN2 Therapeutics position performs unexpectedly, Immuneering Corp 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 Immuneering Corp will offset losses from the drop in Immuneering Corp's long position.| AN2 Therapeutics vs. Eliem Therapeutics | AN2 Therapeutics vs. Scpharmaceuticals | AN2 Therapeutics vs. Milestone Pharmaceuticals | AN2 Therapeutics vs. Seres Therapeutics |
| Immuneering Corp vs. Pmv Pharmaceuticals | Immuneering Corp vs. Cullinan Oncology LLC | Immuneering Corp vs. Enliven Therapeutics | Immuneering Corp vs. Larimar Therapeutics |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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