Correlation Between ImmuCell and Paragon Technologies
Can any of the company-specific risk be diversified away by investing in both ImmuCell and Paragon Technologies 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 Paragon Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuCell and Paragon Technologies, you can compare the effects of market volatilities on ImmuCell and Paragon Technologies 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 Paragon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuCell and Paragon Technologies.
Diversification Opportunities for ImmuCell and Paragon Technologies
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between ImmuCell and Paragon is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Paragon Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paragon Technologies 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 Paragon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paragon Technologies has no effect on the direction of ImmuCell i.e., ImmuCell and Paragon Technologies go up and down completely randomly.
Pair Corralation between ImmuCell and Paragon Technologies
Given the investment horizon of 90 days ImmuCell is expected to under-perform the Paragon Technologies. But the stock apears to be less risky and, when comparing its historical volatility, ImmuCell is 1.11 times less risky than Paragon Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Paragon Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 740.00 in Paragon Technologies on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Paragon Technologies or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuCell vs. Paragon Technologies
Performance |
| Timeline |
| ImmuCell |
| Paragon Technologies |
ImmuCell and Paragon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuCell and Paragon Technologies
The main advantage of trading using opposite ImmuCell and Paragon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuCell position performs unexpectedly, Paragon Technologies 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 Paragon Technologies will offset losses from the drop in Paragon Technologies' long position.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
| Paragon Technologies vs. Eline Entertainment Group | Paragon Technologies vs. Green Leaf Innovations | Paragon Technologies vs. Plandai Biotech | Paragon Technologies vs. All American Gld |
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 Stocks Directory module to find actively traded stocks across global markets.
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