Correlation Between Immunic and Atara Biotherapeutics
Can any of the company-specific risk be diversified away by investing in both Immunic and Atara Biotherapeutics 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 Immunic and Atara Biotherapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunic and Atara Biotherapeutics, you can compare the effects of market volatilities on Immunic and Atara Biotherapeutics 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 Immunic with a short position of Atara Biotherapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunic and Atara Biotherapeutics.
Diversification Opportunities for Immunic and Atara Biotherapeutics
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Immunic and Atara is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Immunic and Atara Biotherapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atara Biotherapeutics and Immunic 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 Immunic are associated (or correlated) with Atara Biotherapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atara Biotherapeutics has no effect on the direction of Immunic i.e., Immunic and Atara Biotherapeutics go up and down completely randomly.
Pair Corralation between Immunic and Atara Biotherapeutics
Given the investment horizon of 90 days Immunic is expected to generate 2.09 times less return on investment than Atara Biotherapeutics. But when comparing it to its historical volatility, Immunic is 2.17 times less risky than Atara Biotherapeutics. It trades about 0.03 of its potential returns per unit of risk. Atara Biotherapeutics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,225 in Atara Biotherapeutics on August 26, 2024 and sell it today you would lose (2,078) from holding Atara Biotherapeutics or give up 64.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunic vs. Atara Biotherapeutics
Performance |
| Timeline |
| Immunic |
| Atara Biotherapeutics |
Immunic and Atara Biotherapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunic and Atara Biotherapeutics
The main advantage of trading using opposite Immunic and Atara Biotherapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunic position performs unexpectedly, Atara Biotherapeutics 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 Atara Biotherapeutics will offset losses from the drop in Atara Biotherapeutics' long position.| Immunic vs. Generation Bio Co | Immunic vs. Kronos Bio | Immunic vs. Erasca Inc | Immunic vs. C4 Therapeutics |
| Atara Biotherapeutics vs. Fate Therapeutics | Atara Biotherapeutics vs. Sana Biotechnology | Atara Biotherapeutics vs. Caribou Biosciences | Atara Biotherapeutics vs. Arcus Biosciences |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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