Correlation Between ImmuCell and Sparta Capital
Can any of the company-specific risk be diversified away by investing in both ImmuCell and Sparta Capital 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 Sparta Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuCell and Sparta Capital, you can compare the effects of market volatilities on ImmuCell and Sparta Capital 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 Sparta Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuCell and Sparta Capital.
Diversification Opportunities for ImmuCell and Sparta Capital
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ImmuCell and Sparta is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding ImmuCell and Sparta Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparta Capital 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 Sparta Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparta Capital has no effect on the direction of ImmuCell i.e., ImmuCell and Sparta Capital go up and down completely randomly.
Pair Corralation between ImmuCell and Sparta Capital
Given the investment horizon of 90 days ImmuCell is expected to generate 0.38 times more return on investment than Sparta Capital. However, ImmuCell is 2.61 times less risky than Sparta Capital. It trades about 0.0 of its potential returns per unit of risk. Sparta Capital is currently generating about 0.0 per unit of risk. If you would invest 590.00 in ImmuCell on November 19, 2024 and sell it today you would lose (85.00) from holding ImmuCell or give up 14.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
ImmuCell vs. Sparta Capital
Performance |
| Timeline |
| ImmuCell |
| Sparta Capital |
ImmuCell and Sparta Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuCell and Sparta Capital
The main advantage of trading using opposite ImmuCell and Sparta Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuCell position performs unexpectedly, Sparta Capital 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 Sparta Capital will offset losses from the drop in Sparta Capital's long position.| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
| Sparta Capital vs. Zurn Elkay Water | Sparta Capital vs. Federal Signal | Sparta Capital vs. Energy Recovery | Sparta Capital vs. CECO Environmental Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |