Correlation Between ImmunoGen and Akero Therapeutics
Can any of the company-specific risk be diversified away by investing in both ImmunoGen and Akero 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 ImmunoGen and Akero Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmunoGen and Akero Therapeutics, you can compare the effects of market volatilities on ImmunoGen and Akero 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 ImmunoGen with a short position of Akero Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmunoGen and Akero Therapeutics.
Diversification Opportunities for ImmunoGen and Akero Therapeutics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ImmunoGen and Akero is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ImmunoGen and Akero Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akero Therapeutics and ImmunoGen 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 ImmunoGen are associated (or correlated) with Akero Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akero Therapeutics has no effect on the direction of ImmunoGen i.e., ImmunoGen and Akero Therapeutics go up and down completely randomly.
Pair Corralation between ImmunoGen and Akero Therapeutics
If you would invest 2,782 in Akero Therapeutics on November 1, 2024 and sell it today you would earn a total of 2,618 from holding Akero Therapeutics or generate 94.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
ImmunoGen vs. Akero Therapeutics
Performance |
| Timeline |
| ImmunoGen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Akero Therapeutics |
ImmunoGen and Akero Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmunoGen and Akero Therapeutics
The main advantage of trading using opposite ImmunoGen and Akero Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmunoGen position performs unexpectedly, Akero 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 Akero Therapeutics will offset losses from the drop in Akero Therapeutics' long position.| ImmunoGen vs. Madrigal Pharmaceuticals | ImmunoGen vs. TG Therapeutics | ImmunoGen vs. Terns Pharmaceuticals | ImmunoGen vs. Hepion Pharmaceuticals |
| Akero Therapeutics vs. Terns Pharmaceuticals | Akero Therapeutics vs. Madrigal Pharmaceuticals | Akero Therapeutics vs. Inozyme Pharma | Akero Therapeutics vs. Viking 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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