Correlation Between Frequency Therapeutics and ImmuCell
Can any of the company-specific risk be diversified away by investing in both Frequency Therapeutics 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 Frequency Therapeutics and ImmuCell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frequency Therapeutics and ImmuCell, you can compare the effects of market volatilities on Frequency Therapeutics 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 Frequency Therapeutics with a short position of ImmuCell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frequency Therapeutics and ImmuCell.
Diversification Opportunities for Frequency Therapeutics and ImmuCell
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Frequency and ImmuCell is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Frequency Therapeutics and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and Frequency 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 Frequency Therapeutics 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 Frequency Therapeutics i.e., Frequency Therapeutics and ImmuCell go up and down completely randomly.
Pair Corralation between Frequency Therapeutics and ImmuCell
Given the investment horizon of 90 days Frequency Therapeutics is expected to generate 4.09 times more return on investment than ImmuCell. However, Frequency Therapeutics is 4.09 times more volatile than ImmuCell. It trades about 0.09 of its potential returns per unit of risk. ImmuCell is currently generating about -0.01 per unit of risk. If you would invest 39.00 in Frequency Therapeutics on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Frequency Therapeutics or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 13.74% |
| Values | Daily Returns |
Frequency Therapeutics vs. ImmuCell
Performance |
| Timeline |
| Frequency Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ImmuCell |
Frequency Therapeutics and ImmuCell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frequency Therapeutics and ImmuCell
The main advantage of trading using opposite Frequency Therapeutics and ImmuCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frequency Therapeutics 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.| Frequency Therapeutics vs. Lineage Cell Therapeutics | Frequency Therapeutics vs. MAIA Biotechnology | Frequency Therapeutics vs. Armata Pharmaceuticals | Frequency Therapeutics vs. Portage Biotech |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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