Correlation Between Immunovant and I Mab
Can any of the company-specific risk be diversified away by investing in both Immunovant and I Mab 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 I Mab into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunovant and I Mab, you can compare the effects of market volatilities on Immunovant and I Mab 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 I Mab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovant and I Mab.
Diversification Opportunities for Immunovant and I Mab
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Immunovant and IMAB is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Immunovant and I Mab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Mab 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 I Mab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Mab has no effect on the direction of Immunovant i.e., Immunovant and I Mab go up and down completely randomly.
Pair Corralation between Immunovant and I Mab
Given the investment horizon of 90 days Immunovant is expected to generate 1.05 times more return on investment than I Mab. However, Immunovant is 1.05 times more volatile than I Mab. It trades about -0.16 of its potential returns per unit of risk. I Mab is currently generating about -0.39 per unit of risk. If you would invest 2,995 in Immunovant on August 28, 2024 and sell it today you would lose (306.00) from holding Immunovant or give up 10.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunovant vs. I Mab
Performance |
| Timeline |
| Immunovant |
| I Mab |
Immunovant and I Mab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunovant and I Mab
The main advantage of trading using opposite Immunovant and I Mab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunovant position performs unexpectedly, I Mab 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 I Mab will offset losses from the drop in I Mab's long position.| Immunovant vs. Arbutus Biopharma Corp | Immunovant vs. Arcutis Biotherapeutics | Immunovant vs. Legend Biotech Corp | Immunovant vs. Protagonist 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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