Correlation Between CannBioRx Life and Immatics Biotechnologies
Can any of the company-specific risk be diversified away by investing in both CannBioRx Life and Immatics Biotechnologies 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 CannBioRx Life and Immatics Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CannBioRx Life Sciences and immatics biotechnologies GmbH, you can compare the effects of market volatilities on CannBioRx Life and Immatics Biotechnologies 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 CannBioRx Life with a short position of Immatics Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CannBioRx Life and Immatics Biotechnologies.
Diversification Opportunities for CannBioRx Life and Immatics Biotechnologies
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CannBioRx and Immatics is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding CannBioRx Life Sciences and immatics biotechnologies GmbH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics Biotechnologies and CannBioRx Life 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 CannBioRx Life Sciences are associated (or correlated) with Immatics Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics Biotechnologies has no effect on the direction of CannBioRx Life i.e., CannBioRx Life and Immatics Biotechnologies go up and down completely randomly.
Pair Corralation between CannBioRx Life and Immatics Biotechnologies
Assuming the 90 days horizon CannBioRx Life Sciences is expected to generate 1.5 times more return on investment than Immatics Biotechnologies. However, CannBioRx Life is 1.5 times more volatile than immatics biotechnologies GmbH. It trades about 0.03 of its potential returns per unit of risk. immatics biotechnologies GmbH is currently generating about -0.63 per unit of risk. If you would invest 1.14 in CannBioRx Life Sciences on August 29, 2024 and sell it today you would lose (0.06) from holding CannBioRx Life Sciences or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
CannBioRx Life Sciences vs. immatics biotechnologies GmbH
Performance |
| Timeline |
| CannBioRx Life Sciences |
| Immatics Biotechnologies |
CannBioRx Life and Immatics Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CannBioRx Life and Immatics Biotechnologies
The main advantage of trading using opposite CannBioRx Life and Immatics Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CannBioRx Life position performs unexpectedly, Immatics Biotechnologies 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 Immatics Biotechnologies will offset losses from the drop in Immatics Biotechnologies' long position.The idea behind CannBioRx Life Sciences and immatics biotechnologies GmbH 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.| Immatics Biotechnologies vs. Eliem Therapeutics | Immatics Biotechnologies vs. Scpharmaceuticals | Immatics Biotechnologies vs. Milestone Pharmaceuticals | Immatics Biotechnologies vs. Seres 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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