Correlation Between ImmuCell and Lineage Cell
Can any of the company-specific risk be diversified away by investing in both ImmuCell and Lineage Cell 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 Lineage Cell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuCell and Lineage Cell Therapeutics, you can compare the effects of market volatilities on ImmuCell and Lineage Cell 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 Lineage Cell. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuCell and Lineage Cell.
Diversification Opportunities for ImmuCell and Lineage Cell
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ImmuCell and Lineage is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Lineage Cell Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lineage Cell Therapeutics 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 Lineage Cell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lineage Cell Therapeutics has no effect on the direction of ImmuCell i.e., ImmuCell and Lineage Cell go up and down completely randomly.
Pair Corralation between ImmuCell and Lineage Cell
Given the investment horizon of 90 days ImmuCell is expected to generate 0.59 times more return on investment than Lineage Cell. However, ImmuCell is 1.7 times less risky than Lineage Cell. It trades about 0.22 of its potential returns per unit of risk. Lineage Cell Therapeutics is currently generating about 0.09 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 67.00 from holding ImmuCell or generate 14.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuCell vs. Lineage Cell Therapeutics
Performance |
| Timeline |
| ImmuCell |
| Lineage Cell Therapeutics |
ImmuCell and Lineage Cell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuCell and Lineage Cell
The main advantage of trading using opposite ImmuCell and Lineage Cell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuCell position performs unexpectedly, Lineage Cell 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 Lineage Cell will offset losses from the drop in Lineage Cell's long position.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
| Lineage Cell vs. MAIA Biotechnology | Lineage Cell vs. Armata Pharmaceuticals | Lineage Cell vs. Portage Biotech | Lineage Cell vs. Cadrenal Therapeutics, Common |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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