Correlation Between BeiGene and Immunovant
Can any of the company-specific risk be diversified away by investing in both BeiGene and Immunovant 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 BeiGene and Immunovant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BeiGene and Immunovant, you can compare the effects of market volatilities on BeiGene and Immunovant 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 BeiGene with a short position of Immunovant. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Immunovant.
Diversification Opportunities for BeiGene and Immunovant
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between BeiGene and Immunovant is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene and Immunovant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunovant and BeiGene 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 BeiGene are associated (or correlated) with Immunovant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunovant has no effect on the direction of BeiGene i.e., BeiGene and Immunovant go up and down completely randomly.
Pair Corralation between BeiGene and Immunovant
Given the investment horizon of 90 days BeiGene is expected to generate 4.91 times less return on investment than Immunovant. But when comparing it to its historical volatility, BeiGene is 2.02 times less risky than Immunovant. It trades about 0.01 of its potential returns per unit of risk. Immunovant is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,130 in Immunovant on September 1, 2024 and sell it today you would earn a total of 690.00 from holding Immunovant or generate 32.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BeiGene vs. Immunovant
Performance |
| Timeline |
| BeiGene |
| Immunovant |
BeiGene and Immunovant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Immunovant
The main advantage of trading using opposite BeiGene and Immunovant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene position performs unexpectedly, Immunovant 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 Immunovant will offset losses from the drop in Immunovant's long position.| BeiGene vs. Cue Biopharma | BeiGene vs. Tff Pharmaceuticals | BeiGene vs. Lantern Pharma | BeiGene vs. Eliem Therapeutics |
| Immunovant vs. Arbutus Biopharma Corp | Immunovant vs. Arcutis Biotherapeutics | Immunovant vs. Legend Biotech Corp | Immunovant vs. Protagonist 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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