Correlation Between Immunovia Publ and Egetis Therapeutics
Can any of the company-specific risk be diversified away by investing in both Immunovia Publ and Egetis 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 Immunovia Publ and Egetis Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunovia publ AB and Egetis Therapeutics AB, you can compare the effects of market volatilities on Immunovia Publ and Egetis 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 Immunovia Publ with a short position of Egetis Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovia Publ and Egetis Therapeutics.
Diversification Opportunities for Immunovia Publ and Egetis Therapeutics
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Immunovia and Egetis is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Immunovia publ AB and Egetis Therapeutics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egetis Therapeutics and Immunovia Publ 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 Immunovia publ AB are associated (or correlated) with Egetis Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egetis Therapeutics has no effect on the direction of Immunovia Publ i.e., Immunovia Publ and Egetis Therapeutics go up and down completely randomly.
Pair Corralation between Immunovia Publ and Egetis Therapeutics
Assuming the 90 days trading horizon Immunovia publ AB is expected to generate 2.72 times more return on investment than Egetis Therapeutics. However, Immunovia Publ is 2.72 times more volatile than Egetis Therapeutics AB. It trades about 0.04 of its potential returns per unit of risk. Egetis Therapeutics AB is currently generating about -0.03 per unit of risk. If you would invest 148.00 in Immunovia publ AB on September 3, 2024 and sell it today you would lose (63.00) from holding Immunovia publ AB or give up 42.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunovia publ AB vs. Egetis Therapeutics AB
Performance |
| Timeline |
| Immunovia publ AB |
| Egetis Therapeutics |
Immunovia Publ and Egetis Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunovia Publ and Egetis Therapeutics
The main advantage of trading using opposite Immunovia Publ and Egetis Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunovia Publ position performs unexpectedly, Egetis 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 Egetis Therapeutics will offset losses from the drop in Egetis Therapeutics' long position.| Immunovia Publ vs. Oncopeptides AB | Immunovia Publ vs. Hansa Biopharma AB | Immunovia Publ vs. Cantargia AB | Immunovia Publ vs. Camurus AB |
| Egetis Therapeutics vs. Simris Alg AB | Egetis Therapeutics vs. Immunovia publ AB | Egetis Therapeutics vs. Sedana Medical AB | Egetis Therapeutics vs. KABE Group AB |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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