Correlation Between I Mab and Mind Medicine
Can any of the company-specific risk be diversified away by investing in both I Mab and Mind Medicine 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 I Mab and Mind Medicine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I Mab and Mind Medicine, you can compare the effects of market volatilities on I Mab and Mind Medicine 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 I Mab with a short position of Mind Medicine. Check out your portfolio center. Please also check ongoing floating volatility patterns of I Mab and Mind Medicine.
Diversification Opportunities for I Mab and Mind Medicine
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IMAB and Mind is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding I Mab and Mind Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mind Medicine and I Mab 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 I Mab are associated (or correlated) with Mind Medicine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mind Medicine has no effect on the direction of I Mab i.e., I Mab and Mind Medicine go up and down completely randomly.
Pair Corralation between I Mab and Mind Medicine
Given the investment horizon of 90 days I Mab is expected to under-perform the Mind Medicine. But the stock apears to be less risky and, when comparing its historical volatility, I Mab is 1.13 times less risky than Mind Medicine. The stock trades about -0.14 of its potential returns per unit of risk. The Mind Medicine is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 525.00 in Mind Medicine on October 7, 2024 and sell it today you would earn a total of 193.00 from holding Mind Medicine or generate 36.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
I Mab vs. Mind Medicine
Performance |
| Timeline |
| I Mab |
| Mind Medicine |
I Mab and Mind Medicine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I Mab and Mind Medicine
The main advantage of trading using opposite I Mab and Mind Medicine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I Mab position performs unexpectedly, Mind Medicine 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 Mind Medicine will offset losses from the drop in Mind Medicine's long position.The idea behind I Mab and Mind Medicine pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mind Medicine vs. Cybin Inc | Mind Medicine vs. GH Research PLC | Mind Medicine vs. Awakn Life Sciences | Mind Medicine vs. ATAI Life Sciences |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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