Correlation Between Immunovia Publ and I Tech
Can any of the company-specific risk be diversified away by investing in both Immunovia Publ and I Tech 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 I Tech 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 I Tech, you can compare the effects of market volatilities on Immunovia Publ and I Tech 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 I Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovia Publ and I Tech.
Diversification Opportunities for Immunovia Publ and I Tech
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Immunovia and ITECH is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Immunovia publ AB and I Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Tech 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 I Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Tech has no effect on the direction of Immunovia Publ i.e., Immunovia Publ and I Tech go up and down completely randomly.
Pair Corralation between Immunovia Publ and I Tech
Assuming the 90 days trading horizon Immunovia publ AB is expected to generate 2.74 times more return on investment than I Tech. However, Immunovia Publ is 2.74 times more volatile than I Tech. It trades about 0.12 of its potential returns per unit of risk. I Tech is currently generating about 0.3 per unit of risk. If you would invest 66.00 in Immunovia publ AB on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Immunovia publ AB or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunovia publ AB vs. I Tech
Performance |
| Timeline |
| Immunovia publ AB |
| I Tech |
Immunovia Publ and I Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunovia Publ and I Tech
The main advantage of trading using opposite Immunovia Publ and I Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunovia Publ position performs unexpectedly, I Tech 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 I Tech will offset losses from the drop in I Tech's long position.| Immunovia Publ vs. Oncopeptides AB | Immunovia Publ vs. Hansa Biopharma AB | Immunovia Publ vs. Cantargia AB | Immunovia Publ vs. Camurus 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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