Correlation Between ImmuCell and Innovent Biologics
Can any of the company-specific risk be diversified away by investing in both ImmuCell and Innovent Biologics 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 Innovent Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuCell and Innovent Biologics, you can compare the effects of market volatilities on ImmuCell and Innovent Biologics 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 Innovent Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuCell and Innovent Biologics.
Diversification Opportunities for ImmuCell and Innovent Biologics
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between ImmuCell and Innovent is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Innovent Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovent Biologics 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 Innovent Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovent Biologics has no effect on the direction of ImmuCell i.e., ImmuCell and Innovent Biologics go up and down completely randomly.
Pair Corralation between ImmuCell and Innovent Biologics
Given the investment horizon of 90 days ImmuCell is expected to under-perform the Innovent Biologics. But the stock apears to be less risky and, when comparing its historical volatility, ImmuCell is 1.21 times less risky than Innovent Biologics. The stock trades about -0.03 of its potential returns per unit of risk. The Innovent Biologics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 395.00 in Innovent Biologics on August 25, 2024 and sell it today you would earn a total of 90.00 from holding Innovent Biologics or generate 22.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuCell vs. Innovent Biologics
Performance |
| Timeline |
| ImmuCell |
| Innovent Biologics |
ImmuCell and Innovent Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuCell and Innovent Biologics
The main advantage of trading using opposite ImmuCell and Innovent Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuCell position performs unexpectedly, Innovent Biologics 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 Innovent Biologics will offset losses from the drop in Innovent Biologics' long position.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
| Innovent Biologics vs. Telix Pharmaceuticals Limited | Innovent Biologics vs. Keros Therapeutics | Innovent Biologics vs. MAIA Biotechnology | Innovent Biologics vs. Clarity 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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