Correlation Between Equillium and Immutep
Can any of the company-specific risk be diversified away by investing in both Equillium and Immutep 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 Equillium and Immutep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equillium and Immutep Ltd ADR, you can compare the effects of market volatilities on Equillium and Immutep 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 Equillium with a short position of Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equillium and Immutep.
Diversification Opportunities for Equillium and Immutep
Significant diversification
The 3 months correlation between Equillium and Immutep is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Equillium and Immutep Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep Ltd ADR and Equillium 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 Equillium are associated (or correlated) with Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep Ltd ADR has no effect on the direction of Equillium i.e., Equillium and Immutep go up and down completely randomly.
Pair Corralation between Equillium and Immutep
Allowing for the 90-day total investment horizon Equillium is expected to generate 1.42 times more return on investment than Immutep. However, Equillium is 1.42 times more volatile than Immutep Ltd ADR. It trades about 0.02 of its potential returns per unit of risk. Immutep Ltd ADR is currently generating about 0.02 per unit of risk. If you would invest 126.00 in Equillium on September 3, 2024 and sell it today you would lose (51.00) from holding Equillium or give up 40.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Equillium vs. Immutep Ltd ADR
Performance |
| Timeline |
| Equillium |
| Immutep Ltd ADR |
Equillium and Immutep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equillium and Immutep
The main advantage of trading using opposite Equillium and Immutep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equillium position performs unexpectedly, Immutep 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 Immutep will offset losses from the drop in Immutep's long position.| Equillium vs. DiaMedica Therapeutics | Equillium vs. Lyra Therapeutics | Equillium vs. Centessa Pharmaceuticals PLC |
| Immutep vs. Ocean Biomedical | Immutep vs. Elevation Oncology | Immutep vs. Zura Bio Limited | Immutep vs. Cns Pharmaceuticals |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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