Correlation Between Immutep and LianBio ADR
Can any of the company-specific risk be diversified away by investing in both Immutep and LianBio ADR 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 LianBio ADR 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 LianBio ADR, you can compare the effects of market volatilities on Immutep and LianBio ADR 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 LianBio ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immutep and LianBio ADR.
Diversification Opportunities for Immutep and LianBio ADR
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Immutep and LianBio is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Immutep Ltd ADR and LianBio ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianBio ADR 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 LianBio ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianBio ADR has no effect on the direction of Immutep i.e., Immutep and LianBio ADR go up and down completely randomly.
Pair Corralation between Immutep and LianBio ADR
Given the investment horizon of 90 days Immutep is expected to generate 4.09 times less return on investment than LianBio ADR. But when comparing it to its historical volatility, Immutep Ltd ADR is 1.06 times less risky than LianBio ADR. It trades about 0.02 of its potential returns per unit of risk. LianBio ADR is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 144.00 in LianBio ADR on September 3, 2024 and sell it today you would earn a total of 74.00 from holding LianBio ADR or generate 51.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.03% |
| Values | Daily Returns |
Immutep Ltd ADR vs. LianBio ADR
Performance |
| Timeline |
| Immutep Ltd ADR |
| LianBio ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Immutep and LianBio ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immutep and LianBio ADR
The main advantage of trading using opposite Immutep and LianBio ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immutep position performs unexpectedly, LianBio ADR 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 LianBio ADR will offset losses from the drop in LianBio ADR's long position.| Immutep vs. Ocean Biomedical | Immutep vs. Elevation Oncology | Immutep vs. Zura Bio Limited | Immutep vs. Cns Pharmaceuticals |
| LianBio ADR vs. Sensei Biotherapeutics | LianBio ADR vs. NextCure | LianBio ADR vs. Nuvation Bio | LianBio ADR vs. Inozyme Pharma |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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