Correlation Between Exelixis and Iovance Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Exelixis and Iovance Biotherapeutics 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 Exelixis and Iovance Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exelixis and Iovance Biotherapeutics, you can compare the effects of market volatilities on Exelixis and Iovance Biotherapeutics 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 Exelixis with a short position of Iovance Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exelixis and Iovance Biotherapeutics.
Diversification Opportunities for Exelixis and Iovance Biotherapeutics
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Exelixis and Iovance is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Exelixis and Iovance Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iovance Biotherapeutics and Exelixis 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 Exelixis are associated (or correlated) with Iovance Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iovance Biotherapeutics has no effect on the direction of Exelixis i.e., Exelixis and Iovance Biotherapeutics go up and down completely randomly.
Pair Corralation between Exelixis and Iovance Biotherapeutics
Given the investment horizon of 90 days Exelixis is expected to generate 0.59 times more return on investment than Iovance Biotherapeutics. However, Exelixis is 1.69 times less risky than Iovance Biotherapeutics. It trades about 0.4 of its potential returns per unit of risk. Iovance Biotherapeutics is currently generating about -0.18 per unit of risk. If you would invest 2,787 in Exelixis on August 26, 2024 and sell it today you would earn a total of 774.00 from holding Exelixis or generate 27.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exelixis vs. Iovance Biotherapeutics
Performance |
| Timeline |
| Exelixis |
| Iovance Biotherapeutics |
Exelixis and Iovance Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exelixis and Iovance Biotherapeutics
The main advantage of trading using opposite Exelixis and Iovance Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exelixis position performs unexpectedly, Iovance Biotherapeutics 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 Iovance Biotherapeutics will offset losses from the drop in Iovance Biotherapeutics' long position.| Exelixis vs. Eliem Therapeutics | Exelixis vs. HCW Biologics | Exelixis vs. Scpharmaceuticals | Exelixis vs. Milestone Pharmaceuticals |
| Iovance Biotherapeutics vs. PTC Therapeutics | Iovance Biotherapeutics vs. Krystal Biotech | Iovance Biotherapeutics vs. Sarepta Therapeutics | Iovance Biotherapeutics vs. Madrigal 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |