Correlation Between Iovance Biotherapeutics and AnaptysBio
Can any of the company-specific risk be diversified away by investing in both Iovance Biotherapeutics and AnaptysBio 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 Iovance Biotherapeutics and AnaptysBio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iovance Biotherapeutics and AnaptysBio, you can compare the effects of market volatilities on Iovance Biotherapeutics and AnaptysBio 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 Iovance Biotherapeutics with a short position of AnaptysBio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iovance Biotherapeutics and AnaptysBio.
Diversification Opportunities for Iovance Biotherapeutics and AnaptysBio
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Iovance and AnaptysBio is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Iovance Biotherapeutics and AnaptysBio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnaptysBio and Iovance Biotherapeutics 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 Iovance Biotherapeutics are associated (or correlated) with AnaptysBio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnaptysBio has no effect on the direction of Iovance Biotherapeutics i.e., Iovance Biotherapeutics and AnaptysBio go up and down completely randomly.
Pair Corralation between Iovance Biotherapeutics and AnaptysBio
Given the investment horizon of 90 days Iovance Biotherapeutics is expected to generate 0.44 times more return on investment than AnaptysBio. However, Iovance Biotherapeutics is 2.29 times less risky than AnaptysBio. It trades about -0.13 of its potential returns per unit of risk. AnaptysBio is currently generating about -0.13 per unit of risk. If you would invest 969.00 in Iovance Biotherapeutics on September 13, 2024 and sell it today you would lose (111.00) from holding Iovance Biotherapeutics or give up 11.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iovance Biotherapeutics vs. AnaptysBio
Performance |
| Timeline |
| Iovance Biotherapeutics |
| AnaptysBio |
Iovance Biotherapeutics and AnaptysBio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iovance Biotherapeutics and AnaptysBio
The main advantage of trading using opposite Iovance Biotherapeutics and AnaptysBio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iovance Biotherapeutics position performs unexpectedly, AnaptysBio 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 AnaptysBio will offset losses from the drop in AnaptysBio's long position.| Iovance Biotherapeutics vs. PTC Therapeutics | Iovance Biotherapeutics vs. Krystal Biotech | Iovance Biotherapeutics vs. Sarepta Therapeutics | Iovance Biotherapeutics vs. Madrigal Pharmaceuticals |
| AnaptysBio vs. Puma Biotechnology | AnaptysBio vs. Iovance Biotherapeutics | AnaptysBio vs. Sarepta Therapeutics | AnaptysBio vs. Day One Biopharmaceuticals |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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