Correlation Between Immunocore Holdings and Black Diamond
Can any of the company-specific risk be diversified away by investing in both Immunocore Holdings and Black Diamond 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 Immunocore Holdings and Black Diamond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunocore Holdings and Black Diamond Therapeutics, you can compare the effects of market volatilities on Immunocore Holdings and Black Diamond 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 Immunocore Holdings with a short position of Black Diamond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunocore Holdings and Black Diamond.
Diversification Opportunities for Immunocore Holdings and Black Diamond
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Immunocore and Black is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Immunocore Holdings and Black Diamond Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Diamond Therap and Immunocore Holdings 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 Immunocore Holdings are associated (or correlated) with Black Diamond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Diamond Therap has no effect on the direction of Immunocore Holdings i.e., Immunocore Holdings and Black Diamond go up and down completely randomly.
Pair Corralation between Immunocore Holdings and Black Diamond
Given the investment horizon of 90 days Immunocore Holdings is expected to generate 0.46 times more return on investment than Black Diamond. However, Immunocore Holdings is 2.17 times less risky than Black Diamond. It trades about -0.04 of its potential returns per unit of risk. Black Diamond Therapeutics is currently generating about -0.08 per unit of risk. If you would invest 3,807 in Immunocore Holdings on November 4, 2024 and sell it today you would lose (546.00) from holding Immunocore Holdings or give up 14.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunocore Holdings vs. Black Diamond Therapeutics
Performance |
| Timeline |
| Immunocore Holdings |
| Black Diamond Therap |
Immunocore Holdings and Black Diamond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunocore Holdings and Black Diamond
The main advantage of trading using opposite Immunocore Holdings and Black Diamond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunocore Holdings position performs unexpectedly, Black Diamond 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 Black Diamond will offset losses from the drop in Black Diamond's long position.| Immunocore Holdings vs. Arcellx | Immunocore Holdings vs. Ventyx Biosciences | Immunocore Holdings vs. Vaxcyte | Immunocore Holdings vs. Nuvalent |
| Black Diamond vs. Passage Bio | Black Diamond vs. Alector | Black Diamond vs. Revolution Medicines | Black Diamond vs. Stoke Therapeutics |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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