Correlation Between Immatics and Cerevel Therapeutics
Can any of the company-specific risk be diversified away by investing in both Immatics and Cerevel 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 Immatics and Cerevel Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immatics NV and Cerevel Therapeutics Holdings, you can compare the effects of market volatilities on Immatics and Cerevel 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 Immatics with a short position of Cerevel Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immatics and Cerevel Therapeutics.
Diversification Opportunities for Immatics and Cerevel Therapeutics
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Immatics and Cerevel is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Immatics NV and Cerevel Therapeutics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerevel Therapeutics and Immatics 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 Immatics NV are associated (or correlated) with Cerevel Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerevel Therapeutics has no effect on the direction of Immatics i.e., Immatics and Cerevel Therapeutics go up and down completely randomly.
Pair Corralation between Immatics and Cerevel Therapeutics
If you would invest (100.00) in Cerevel Therapeutics Holdings on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Cerevel Therapeutics Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Immatics NV vs. Cerevel Therapeutics Holdings
Performance |
| Timeline |
| Immatics NV |
| Cerevel Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Immatics and Cerevel Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immatics and Cerevel Therapeutics
The main advantage of trading using opposite Immatics and Cerevel Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immatics position performs unexpectedly, Cerevel 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 Cerevel Therapeutics will offset losses from the drop in Cerevel Therapeutics' long position.| Immatics vs. Crinetics Pharmaceuticals | Immatics vs. Alx Oncology Holdings | Immatics vs. Bioatla | Immatics vs. Aerovate Therapeutics |
| Cerevel Therapeutics vs. Avidity Biosciences | Cerevel Therapeutics vs. Revolution Medicines | Cerevel Therapeutics vs. Day One Biopharmaceuticals | Cerevel Therapeutics vs. SpringWorks Therapeutics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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