Correlation Between ImmunoCellular Therapeutics and XOMA
Can any of the company-specific risk be diversified away by investing in both ImmunoCellular Therapeutics and XOMA 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 ImmunoCellular Therapeutics and XOMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmunoCellular Therapeutics and XOMA Corporation, you can compare the effects of market volatilities on ImmunoCellular Therapeutics and XOMA 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 ImmunoCellular Therapeutics with a short position of XOMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmunoCellular Therapeutics and XOMA.
Diversification Opportunities for ImmunoCellular Therapeutics and XOMA
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ImmunoCellular and XOMA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ImmunoCellular Therapeutics and XOMA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XOMA and ImmunoCellular Therapeutics 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 ImmunoCellular Therapeutics are associated (or correlated) with XOMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XOMA has no effect on the direction of ImmunoCellular Therapeutics i.e., ImmunoCellular Therapeutics and XOMA go up and down completely randomly.
Pair Corralation between ImmunoCellular Therapeutics and XOMA
If you would invest 47.00 in ImmunoCellular Therapeutics on August 28, 2024 and sell it today you would earn a total of 0.00 from holding ImmunoCellular Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
ImmunoCellular Therapeutics vs. XOMA Corp.
Performance |
| Timeline |
| ImmunoCellular Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| XOMA |
ImmunoCellular Therapeutics and XOMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmunoCellular Therapeutics and XOMA
The main advantage of trading using opposite ImmunoCellular Therapeutics and XOMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmunoCellular Therapeutics position performs unexpectedly, XOMA 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 XOMA will offset losses from the drop in XOMA's long position.The idea behind ImmunoCellular Therapeutics and XOMA Corporation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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