Correlation Between Evogene and ImmuCell
Can any of the company-specific risk be diversified away by investing in both Evogene and ImmuCell 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 Evogene and ImmuCell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evogene and ImmuCell, you can compare the effects of market volatilities on Evogene and ImmuCell 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 Evogene with a short position of ImmuCell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evogene and ImmuCell.
Diversification Opportunities for Evogene and ImmuCell
Very weak diversification
The 3 months correlation between Evogene and ImmuCell is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Evogene and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and Evogene 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 Evogene are associated (or correlated) with ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of Evogene i.e., Evogene and ImmuCell go up and down completely randomly.
Pair Corralation between Evogene and ImmuCell
Given the investment horizon of 90 days Evogene is expected to under-perform the ImmuCell. In addition to that, Evogene is 1.87 times more volatile than ImmuCell. It trades about -0.03 of its total potential returns per unit of risk. ImmuCell is currently generating about -0.03 per unit of volatility. If you would invest 675.00 in ImmuCell on August 30, 2024 and sell it today you would lose (303.00) from holding ImmuCell or give up 44.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Evogene vs. ImmuCell
Performance |
| Timeline |
| Evogene |
| ImmuCell |
Evogene and ImmuCell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evogene and ImmuCell
The main advantage of trading using opposite Evogene and ImmuCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evogene position performs unexpectedly, ImmuCell 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 ImmuCell will offset losses from the drop in ImmuCell's long position.| Evogene vs. Arcus Biosciences | Evogene vs. Fate Therapeutics | Evogene vs. Pluri Inc | Evogene vs. Lexaria Bioscience Corp |
| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
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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