Correlation Between Gamida Cell and ImmunoGen

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Can any of the company-specific risk be diversified away by investing in both Gamida Cell and ImmunoGen 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 Gamida Cell and ImmunoGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamida Cell and ImmunoGen, you can compare the effects of market volatilities on Gamida Cell and ImmunoGen 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 Gamida Cell with a short position of ImmunoGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamida Cell and ImmunoGen.

Diversification Opportunities for Gamida Cell and ImmunoGen

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Gamida and ImmunoGen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gamida Cell and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen and Gamida Cell 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 Gamida Cell are associated (or correlated) with ImmunoGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmunoGen has no effect on the direction of Gamida Cell i.e., Gamida Cell and ImmunoGen go up and down completely randomly.

Pair Corralation between Gamida Cell and ImmunoGen

If you would invest (100.00) in ImmunoGen on November 28, 2024 and sell it today you would earn a total of  100.00  from holding ImmunoGen or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Gamida Cell  vs.  ImmunoGen

 Performance 
       Timeline  
Gamida Cell 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Gamida Cell has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Gamida Cell is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
ImmunoGen 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days ImmunoGen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, ImmunoGen is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Gamida Cell and ImmunoGen Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Gamida Cell and ImmunoGen

The main advantage of trading using opposite Gamida Cell and ImmunoGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamida Cell position performs unexpectedly, ImmunoGen 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 ImmunoGen will offset losses from the drop in ImmunoGen's long position.
The idea behind Gamida Cell and ImmunoGen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stocks Directory module to find actively traded stocks across global markets.

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