Correlation Between Immutep and Bavarian Nordic
Can any of the company-specific risk be diversified away by investing in both Immutep and Bavarian Nordic 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 Immutep and Bavarian Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immutep Ltd ADR and Bavarian Nordic AS, you can compare the effects of market volatilities on Immutep and Bavarian Nordic 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 Immutep with a short position of Bavarian Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immutep and Bavarian Nordic.
Diversification Opportunities for Immutep and Bavarian Nordic
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Immutep and Bavarian is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Immutep Ltd ADR and Bavarian Nordic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bavarian Nordic AS and Immutep 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 Immutep Ltd ADR are associated (or correlated) with Bavarian Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bavarian Nordic AS has no effect on the direction of Immutep i.e., Immutep and Bavarian Nordic go up and down completely randomly.
Pair Corralation between Immutep and Bavarian Nordic
Given the investment horizon of 90 days Immutep Ltd ADR is expected to generate 1.38 times more return on investment than Bavarian Nordic. However, Immutep is 1.38 times more volatile than Bavarian Nordic AS. It trades about 0.02 of its potential returns per unit of risk. Bavarian Nordic AS is currently generating about 0.01 per unit of risk. If you would invest 223.00 in Immutep Ltd ADR on September 2, 2024 and sell it today you would lose (20.00) from holding Immutep Ltd ADR or give up 8.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Immutep Ltd ADR vs. Bavarian Nordic AS
Performance |
| Timeline |
| Immutep Ltd ADR |
| Bavarian Nordic AS |
Immutep and Bavarian Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immutep and Bavarian Nordic
The main advantage of trading using opposite Immutep and Bavarian Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immutep position performs unexpectedly, Bavarian Nordic 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 Bavarian Nordic will offset losses from the drop in Bavarian Nordic's long position.| Immutep vs. Ocean Biomedical | Immutep vs. Elevation Oncology | Immutep vs. Zura Bio Limited | Immutep vs. Cns Pharmaceuticals |
| Bavarian Nordic vs. Rigel Pharmaceuticals | Bavarian Nordic vs. Geron | Bavarian Nordic vs. Verastem | Bavarian Nordic vs. Immutep Ltd ADR |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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