Correlation Between ImmuCell and Fortress Biotech
Can any of the company-specific risk be diversified away by investing in both ImmuCell and Fortress Biotech 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 Fortress Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuCell and Fortress Biotech Pref, you can compare the effects of market volatilities on ImmuCell and Fortress Biotech 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 Fortress Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuCell and Fortress Biotech.
Diversification Opportunities for ImmuCell and Fortress Biotech
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ImmuCell and Fortress is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Fortress Biotech Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Biotech Pref 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 Fortress Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Biotech Pref has no effect on the direction of ImmuCell i.e., ImmuCell and Fortress Biotech go up and down completely randomly.
Pair Corralation between ImmuCell and Fortress Biotech
Given the investment horizon of 90 days ImmuCell is expected to generate 1.61 times more return on investment than Fortress Biotech. However, ImmuCell is 1.61 times more volatile than Fortress Biotech Pref. It trades about 0.07 of its potential returns per unit of risk. Fortress Biotech Pref is currently generating about -0.13 per unit of risk. If you would invest 522.00 in ImmuCell on November 3, 2024 and sell it today you would earn a total of 22.00 from holding ImmuCell or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuCell vs. Fortress Biotech Pref
Performance |
| Timeline |
| ImmuCell |
| Fortress Biotech Pref |
ImmuCell and Fortress Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuCell and Fortress Biotech
The main advantage of trading using opposite ImmuCell and Fortress Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuCell position performs unexpectedly, Fortress Biotech 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 Fortress Biotech will offset losses from the drop in Fortress Biotech's long position.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
| Fortress Biotech vs. Checkpoint Therapeutics | Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Reviva Pharmaceuticals Holdings | Fortress Biotech vs. Kodiak Sciences |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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