Correlation Between ImmuCell and Fennec Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both ImmuCell and Fennec Pharmaceuticals 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 Fennec Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuCell and Fennec Pharmaceuticals, you can compare the effects of market volatilities on ImmuCell and Fennec Pharmaceuticals 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 Fennec Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuCell and Fennec Pharmaceuticals.
Diversification Opportunities for ImmuCell and Fennec Pharmaceuticals
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ImmuCell and Fennec is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Fennec Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fennec Pharmaceuticals 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 Fennec Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fennec Pharmaceuticals has no effect on the direction of ImmuCell i.e., ImmuCell and Fennec Pharmaceuticals go up and down completely randomly.
Pair Corralation between ImmuCell and Fennec Pharmaceuticals
Given the investment horizon of 90 days ImmuCell is expected to generate 2.01 times more return on investment than Fennec Pharmaceuticals. However, ImmuCell is 2.01 times more volatile than Fennec Pharmaceuticals. It trades about 0.27 of its potential returns per unit of risk. Fennec Pharmaceuticals is currently generating about -0.37 per unit of risk. If you would invest 471.00 in ImmuCell on October 23, 2024 and sell it today you would earn a total of 79.00 from holding ImmuCell or generate 16.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuCell vs. Fennec Pharmaceuticals
Performance |
| Timeline |
| ImmuCell |
| Fennec Pharmaceuticals |
ImmuCell and Fennec Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuCell and Fennec Pharmaceuticals
The main advantage of trading using opposite ImmuCell and Fennec Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuCell position performs unexpectedly, Fennec Pharmaceuticals 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 Fennec Pharmaceuticals will offset losses from the drop in Fennec Pharmaceuticals' long position.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
| Fennec Pharmaceuticals vs. Molecular Partners AG | Fennec Pharmaceuticals vs. MediciNova | Fennec Pharmaceuticals vs. Anebulo Pharmaceuticals | Fennec Pharmaceuticals vs. Champions Oncology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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