Correlation Between ImmuCell and IShares IBoxx
Can any of the company-specific risk be diversified away by investing in both ImmuCell and IShares IBoxx 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 IShares IBoxx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuCell and iShares iBoxx Investment, you can compare the effects of market volatilities on ImmuCell and IShares IBoxx 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 IShares IBoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuCell and IShares IBoxx.
Diversification Opportunities for ImmuCell and IShares IBoxx
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ImmuCell and IShares is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and iShares iBoxx Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBoxx Investment 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 IShares IBoxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBoxx Investment has no effect on the direction of ImmuCell i.e., ImmuCell and IShares IBoxx go up and down completely randomly.
Pair Corralation between ImmuCell and IShares IBoxx
Given the investment horizon of 90 days ImmuCell is expected to generate 3.79 times more return on investment than IShares IBoxx. However, ImmuCell is 3.79 times more volatile than iShares iBoxx Investment. It trades about 0.03 of its potential returns per unit of risk. iShares iBoxx Investment is currently generating about -0.17 per unit of risk. If you would invest 362.00 in ImmuCell on August 26, 2024 and sell it today you would earn a total of 7.00 from holding ImmuCell or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuCell vs. iShares iBoxx Investment
Performance |
| Timeline |
| ImmuCell |
| iShares iBoxx Investment |
ImmuCell and IShares IBoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuCell and IShares IBoxx
The main advantage of trading using opposite ImmuCell and IShares IBoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuCell position performs unexpectedly, IShares IBoxx 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 IShares IBoxx will offset losses from the drop in IShares IBoxx's long position.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
| IShares IBoxx vs. Senstar Technologies | IShares IBoxx vs. ImmuCell | IShares IBoxx vs. Anika Therapeutics | IShares IBoxx vs. Aquagold International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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