Correlation Between Immunovant and BeiGene
Can any of the company-specific risk be diversified away by investing in both Immunovant and BeiGene 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 Immunovant and BeiGene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunovant and BeiGene, you can compare the effects of market volatilities on Immunovant and BeiGene 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 Immunovant with a short position of BeiGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovant and BeiGene.
Diversification Opportunities for Immunovant and BeiGene
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Immunovant and BeiGene is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Immunovant and BeiGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeiGene and Immunovant 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 Immunovant are associated (or correlated) with BeiGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeiGene has no effect on the direction of Immunovant i.e., Immunovant and BeiGene go up and down completely randomly.
Pair Corralation between Immunovant and BeiGene
Given the investment horizon of 90 days Immunovant is expected to generate 2.02 times more return on investment than BeiGene. However, Immunovant is 2.02 times more volatile than BeiGene. It trades about 0.03 of its potential returns per unit of risk. BeiGene is currently generating about 0.01 per unit of risk. If you would invest 2,130 in Immunovant on September 1, 2024 and sell it today you would earn a total of 690.00 from holding Immunovant or generate 32.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunovant vs. BeiGene
Performance |
| Timeline |
| Immunovant |
| BeiGene |
Immunovant and BeiGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunovant and BeiGene
The main advantage of trading using opposite Immunovant and BeiGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunovant position performs unexpectedly, BeiGene 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 BeiGene will offset losses from the drop in BeiGene's long position.| Immunovant vs. Arbutus Biopharma Corp | Immunovant vs. Arcutis Biotherapeutics | Immunovant vs. Legend Biotech Corp | Immunovant vs. Protagonist Therapeutics |
| BeiGene vs. Cue Biopharma | BeiGene vs. Tff Pharmaceuticals | BeiGene vs. Lantern Pharma | BeiGene vs. Eliem 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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