Correlation Between Immunic and Generation Bio
Can any of the company-specific risk be diversified away by investing in both Immunic and Generation Bio 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 Generation Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunic and Generation Bio Co, you can compare the effects of market volatilities on Immunic and Generation Bio 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 Generation Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunic and Generation Bio.
Diversification Opportunities for Immunic and Generation Bio
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Immunic and Generation is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Immunic and Generation Bio Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generation Bio 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 Generation Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generation Bio has no effect on the direction of Immunic i.e., Immunic and Generation Bio go up and down completely randomly.
Pair Corralation between Immunic and Generation Bio
Given the investment horizon of 90 days Immunic is expected to under-perform the Generation Bio. But the stock apears to be less risky and, when comparing its historical volatility, Immunic is 1.61 times less risky than Generation Bio. The stock trades about -0.02 of its potential returns per unit of risk. The Generation Bio Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 448.00 in Generation Bio Co on August 26, 2024 and sell it today you would lose (311.00) from holding Generation Bio Co or give up 69.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunic vs. Generation Bio Co
Performance |
| Timeline |
| Immunic |
| Generation Bio |
Immunic and Generation Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunic and Generation Bio
The main advantage of trading using opposite Immunic and Generation Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunic position performs unexpectedly, Generation Bio 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 Generation Bio will offset losses from the drop in Generation Bio's long position.| Immunic vs. Generation Bio Co | Immunic vs. Kronos Bio | Immunic vs. Erasca Inc | Immunic vs. C4 Therapeutics |
| Generation Bio vs. Monte Rosa Therapeutics | Generation Bio vs. Nkarta Inc | Generation Bio vs. Lyell Immunopharma | Generation Bio vs. Sana Biotechnology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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