Correlation Between Hepion Pharmaceuticals and ImmunoGen
Can any of the company-specific risk be diversified away by investing in both Hepion Pharmaceuticals 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 Hepion Pharmaceuticals and ImmunoGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hepion Pharmaceuticals and ImmunoGen, you can compare the effects of market volatilities on Hepion Pharmaceuticals 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 Hepion Pharmaceuticals with a short position of ImmunoGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hepion Pharmaceuticals and ImmunoGen.
Diversification Opportunities for Hepion Pharmaceuticals and ImmunoGen
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hepion and ImmunoGen is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hepion Pharmaceuticals and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen and Hepion Pharmaceuticals 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 Hepion Pharmaceuticals 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 Hepion Pharmaceuticals i.e., Hepion Pharmaceuticals and ImmunoGen go up and down completely randomly.
Pair Corralation between Hepion Pharmaceuticals and ImmunoGen
Given the investment horizon of 90 days Hepion Pharmaceuticals is expected to under-perform the ImmunoGen. But the stock apears to be less risky and, when comparing its historical volatility, Hepion Pharmaceuticals is 1.33 times less risky than ImmunoGen. The stock trades about -0.02 of its potential returns per unit of risk. The ImmunoGen is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 530.00 in ImmunoGen on August 27, 2024 and sell it today you would earn a total of 1,290 from holding ImmunoGen or generate 243.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
Hepion Pharmaceuticals vs. ImmunoGen
Performance |
| Timeline |
| Hepion Pharmaceuticals |
| ImmunoGen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hepion Pharmaceuticals and ImmunoGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hepion Pharmaceuticals and ImmunoGen
The main advantage of trading using opposite Hepion Pharmaceuticals and ImmunoGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hepion Pharmaceuticals 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.| Hepion Pharmaceuticals vs. Enveric Biosciences | Hepion Pharmaceuticals vs. Elevation Oncology | Hepion Pharmaceuticals vs. Ocean Biomedical | Hepion Pharmaceuticals vs. Zura Bio Limited |
| ImmunoGen vs. Madrigal Pharmaceuticals | ImmunoGen vs. TG Therapeutics | ImmunoGen vs. Terns Pharmaceuticals | ImmunoGen vs. Hepion 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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