Correlation Between Bright Minds and Immatics
Can any of the company-specific risk be diversified away by investing in both Bright Minds and Immatics 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 Bright Minds and Immatics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bright Minds Biosciences and Immatics NV, you can compare the effects of market volatilities on Bright Minds and Immatics 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 Bright Minds with a short position of Immatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bright Minds and Immatics.
Diversification Opportunities for Bright Minds and Immatics
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bright and Immatics is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bright Minds Biosciences and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV and Bright Minds 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 Bright Minds Biosciences are associated (or correlated) with Immatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics NV has no effect on the direction of Bright Minds i.e., Bright Minds and Immatics go up and down completely randomly.
Pair Corralation between Bright Minds and Immatics
Given the investment horizon of 90 days Bright Minds Biosciences is expected to generate 3.3 times more return on investment than Immatics. However, Bright Minds is 3.3 times more volatile than Immatics NV. It trades about -0.11 of its potential returns per unit of risk. Immatics NV is currently generating about -0.45 per unit of risk. If you would invest 4,764 in Bright Minds Biosciences on August 28, 2024 and sell it today you would lose (905.00) from holding Bright Minds Biosciences or give up 19.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bright Minds Biosciences vs. Immatics NV
Performance |
| Timeline |
| Bright Minds Biosciences |
| Immatics NV |
Bright Minds and Immatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bright Minds and Immatics
The main advantage of trading using opposite Bright Minds and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bright Minds position performs unexpectedly, Immatics 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 will offset losses from the drop in Immatics' long position.| Bright Minds vs. Revelation Biosciences | Bright Minds vs. Zura Bio Limited | Bright Minds vs. Phio Pharmaceuticals Corp | Bright Minds vs. ZyVersa Therapeutics |
| Immatics vs. Crinetics Pharmaceuticals | Immatics vs. Alx Oncology Holdings | Immatics vs. Bioatla | Immatics vs. Aerovate 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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