Correlation Between Edgewise Therapeutics and Immatics
Can any of the company-specific risk be diversified away by investing in both Edgewise Therapeutics 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 Edgewise Therapeutics and Immatics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edgewise Therapeutics and Immatics NV, you can compare the effects of market volatilities on Edgewise Therapeutics 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 Edgewise Therapeutics with a short position of Immatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edgewise Therapeutics and Immatics.
Diversification Opportunities for Edgewise Therapeutics and Immatics
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edgewise and Immatics is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Edgewise Therapeutics and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV and Edgewise Therapeutics 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 Edgewise Therapeutics 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 Edgewise Therapeutics i.e., Edgewise Therapeutics and Immatics go up and down completely randomly.
Pair Corralation between Edgewise Therapeutics and Immatics
Given the investment horizon of 90 days Edgewise Therapeutics is expected to generate 1.21 times more return on investment than Immatics. However, Edgewise Therapeutics is 1.21 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 3,404 in Edgewise Therapeutics on August 27, 2024 and sell it today you would lose (206.00) from holding Edgewise Therapeutics or give up 6.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edgewise Therapeutics vs. Immatics NV
Performance |
| Timeline |
| Edgewise Therapeutics |
| Immatics NV |
Edgewise Therapeutics and Immatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edgewise Therapeutics and Immatics
The main advantage of trading using opposite Edgewise Therapeutics and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edgewise Therapeutics 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.| Edgewise Therapeutics vs. Century Therapeutics | Edgewise Therapeutics vs. C4 Therapeutics | Edgewise Therapeutics vs. Mineralys Therapeutics, Common | Edgewise Therapeutics vs. Cullinan Oncology LLC |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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