Correlation Between ImmunoGen and Inovio Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both ImmunoGen and Inovio Pharmaceuticals 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 Inovio Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmunoGen and Inovio Pharmaceuticals, you can compare the effects of market volatilities on ImmunoGen and Inovio Pharmaceuticals 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 Inovio Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmunoGen and Inovio Pharmaceuticals.
Diversification Opportunities for ImmunoGen and Inovio Pharmaceuticals
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ImmunoGen and Inovio is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding ImmunoGen and Inovio Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inovio Pharmaceuticals 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 Inovio Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inovio Pharmaceuticals has no effect on the direction of ImmunoGen i.e., ImmunoGen and Inovio Pharmaceuticals go up and down completely randomly.
Pair Corralation between ImmunoGen and Inovio Pharmaceuticals
If you would invest 456.00 in Inovio Pharmaceuticals on September 3, 2024 and sell it today you would lose (21.00) from holding Inovio Pharmaceuticals or give up 4.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
ImmunoGen vs. Inovio Pharmaceuticals
Performance |
| Timeline |
| ImmunoGen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Inovio Pharmaceuticals |
ImmunoGen and Inovio Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmunoGen and Inovio Pharmaceuticals
The main advantage of trading using opposite ImmunoGen and Inovio Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmunoGen position performs unexpectedly, Inovio Pharmaceuticals 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 Inovio Pharmaceuticals will offset losses from the drop in Inovio Pharmaceuticals' long position.| ImmunoGen vs. Madrigal Pharmaceuticals | ImmunoGen vs. TG Therapeutics | ImmunoGen vs. Terns Pharmaceuticals | ImmunoGen vs. Hepion Pharmaceuticals |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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