Correlation Between Immunocore Holdings and DiaMedica Therapeutics
Can any of the company-specific risk be diversified away by investing in both Immunocore Holdings and DiaMedica Therapeutics 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 DiaMedica Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunocore Holdings and DiaMedica Therapeutics, you can compare the effects of market volatilities on Immunocore Holdings and DiaMedica Therapeutics 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 DiaMedica Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunocore Holdings and DiaMedica Therapeutics.
Diversification Opportunities for Immunocore Holdings and DiaMedica Therapeutics
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Immunocore and DiaMedica is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Immunocore Holdings and DiaMedica Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DiaMedica Therapeutics 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 DiaMedica Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DiaMedica Therapeutics has no effect on the direction of Immunocore Holdings i.e., Immunocore Holdings and DiaMedica Therapeutics go up and down completely randomly.
Pair Corralation between Immunocore Holdings and DiaMedica Therapeutics
Given the investment horizon of 90 days Immunocore Holdings is expected to under-perform the DiaMedica Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Immunocore Holdings is 1.34 times less risky than DiaMedica Therapeutics. The stock trades about -0.02 of its potential returns per unit of risk. The DiaMedica Therapeutics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 430.00 in DiaMedica Therapeutics on August 27, 2024 and sell it today you would earn a total of 40.00 from holding DiaMedica Therapeutics or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunocore Holdings vs. DiaMedica Therapeutics
Performance |
| Timeline |
| Immunocore Holdings |
| DiaMedica Therapeutics |
Immunocore Holdings and DiaMedica Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunocore Holdings and DiaMedica Therapeutics
The main advantage of trading using opposite Immunocore Holdings and DiaMedica Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunocore Holdings position performs unexpectedly, DiaMedica Therapeutics 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 DiaMedica Therapeutics will offset losses from the drop in DiaMedica Therapeutics' long position.| Immunocore Holdings vs. Arcellx | Immunocore Holdings vs. Ventyx Biosciences | Immunocore Holdings vs. Vaxcyte | Immunocore Holdings vs. Nuvalent |
| DiaMedica Therapeutics vs. Eliem Therapeutics | DiaMedica Therapeutics vs. HCW Biologics | DiaMedica Therapeutics vs. Scpharmaceuticals | DiaMedica Therapeutics vs. Milestone Pharmaceuticals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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