Correlation Between Gracell Biotechnologies and Immuneering Corp
Can any of the company-specific risk be diversified away by investing in both Gracell Biotechnologies and Immuneering Corp 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 Gracell Biotechnologies and Immuneering Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gracell Biotechnologies and Immuneering Corp, you can compare the effects of market volatilities on Gracell Biotechnologies and Immuneering Corp 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 Gracell Biotechnologies with a short position of Immuneering Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gracell Biotechnologies and Immuneering Corp.
Diversification Opportunities for Gracell Biotechnologies and Immuneering Corp
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gracell and Immuneering is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gracell Biotechnologies and Immuneering Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuneering Corp and Gracell Biotechnologies 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 Gracell Biotechnologies are associated (or correlated) with Immuneering Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuneering Corp has no effect on the direction of Gracell Biotechnologies i.e., Gracell Biotechnologies and Immuneering Corp go up and down completely randomly.
Pair Corralation between Gracell Biotechnologies and Immuneering Corp
Given the investment horizon of 90 days Gracell Biotechnologies is expected to generate 0.85 times more return on investment than Immuneering Corp. However, Gracell Biotechnologies is 1.17 times less risky than Immuneering Corp. It trades about 0.07 of its potential returns per unit of risk. Immuneering Corp is currently generating about 0.01 per unit of risk. If you would invest 263.00 in Gracell Biotechnologies on August 28, 2024 and sell it today you would earn a total of 139.00 from holding Gracell Biotechnologies or generate 52.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.72% |
| Values | Daily Returns |
Gracell Biotechnologies vs. Immuneering Corp
Performance |
| Timeline |
| Gracell Biotechnologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Immuneering Corp |
Gracell Biotechnologies and Immuneering Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gracell Biotechnologies and Immuneering Corp
The main advantage of trading using opposite Gracell Biotechnologies and Immuneering Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gracell Biotechnologies position performs unexpectedly, Immuneering Corp 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 Immuneering Corp will offset losses from the drop in Immuneering Corp's long position.| Gracell Biotechnologies vs. Monte Rosa Therapeutics | Gracell Biotechnologies vs. Design Therapeutics | Gracell Biotechnologies vs. Erasca Inc | Gracell Biotechnologies vs. NextCure |
| Immuneering Corp vs. Pmv Pharmaceuticals | Immuneering Corp vs. Cullinan Oncology LLC | Immuneering Corp vs. Enliven Therapeutics | Immuneering Corp vs. Larimar 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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