Correlation Between Geron and Immutep
Can any of the company-specific risk be diversified away by investing in both Geron 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 Geron and Immutep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geron and Immutep Ltd ADR, you can compare the effects of market volatilities on Geron 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 Geron with a short position of Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Immutep.
Diversification Opportunities for Geron and Immutep
Very weak diversification
The 3 months correlation between Geron and Immutep is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Geron 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 Geron 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 Geron 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 Geron i.e., Geron and Immutep go up and down completely randomly.
Pair Corralation between Geron and Immutep
Given the investment horizon of 90 days Geron is expected to under-perform the Immutep. In addition to that, Geron is 2.74 times more volatile than Immutep Ltd ADR. It trades about -0.34 of its total potential returns per unit of risk. Immutep Ltd ADR is currently generating about -0.04 per unit of volatility. If you would invest 194.00 in Immutep Ltd ADR on November 28, 2024 and sell it today you would lose (6.00) from holding Immutep Ltd ADR or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geron vs. Immutep Ltd ADR
Performance |
| Timeline |
| Geron |
| Immutep Ltd ADR |
Geron and Immutep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Immutep
The main advantage of trading using opposite Geron and Immutep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron 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.| Geron vs. Viking Therapeutics | Geron vs. TG Therapeutics | Geron vs. X4 Pharmaceuticals | Geron vs. PDS Biotechnology Corp |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |