Correlation Between ImmuCell and Collplant Biotechnologies
Can any of the company-specific risk be diversified away by investing in both ImmuCell and Collplant Biotechnologies 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 ImmuCell and Collplant Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuCell and Collplant Biotechnologies, you can compare the effects of market volatilities on ImmuCell and Collplant Biotechnologies 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 ImmuCell with a short position of Collplant Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuCell and Collplant Biotechnologies.
Diversification Opportunities for ImmuCell and Collplant Biotechnologies
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ImmuCell and Collplant is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Collplant Biotechnologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collplant Biotechnologies and ImmuCell 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 ImmuCell are associated (or correlated) with Collplant Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collplant Biotechnologies has no effect on the direction of ImmuCell i.e., ImmuCell and Collplant Biotechnologies go up and down completely randomly.
Pair Corralation between ImmuCell and Collplant Biotechnologies
Given the investment horizon of 90 days ImmuCell is expected to under-perform the Collplant Biotechnologies. But the stock apears to be less risky and, when comparing its historical volatility, ImmuCell is 1.48 times less risky than Collplant Biotechnologies. The stock trades about -0.03 of its potential returns per unit of risk. The Collplant Biotechnologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 821.00 in Collplant Biotechnologies on August 30, 2024 and sell it today you would lose (396.15) from holding Collplant Biotechnologies or give up 48.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
ImmuCell vs. Collplant Biotechnologies
Performance |
| Timeline |
| ImmuCell |
| Collplant Biotechnologies |
ImmuCell and Collplant Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuCell and Collplant Biotechnologies
The main advantage of trading using opposite ImmuCell and Collplant Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuCell position performs unexpectedly, Collplant Biotechnologies 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 Collplant Biotechnologies will offset losses from the drop in Collplant Biotechnologies' long position.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
| Collplant Biotechnologies vs. Keros Therapeutics | Collplant Biotechnologies vs. Merus BV | Collplant Biotechnologies vs. Vericel Corp Ord | Collplant Biotechnologies vs. Century 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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