Correlation Between Johnson Johnson and ImmunoGen
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson and ImmunoGen 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 Johnson Johnson and ImmunoGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson and ImmunoGen, you can compare the effects of market volatilities on Johnson Johnson and ImmunoGen 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 Johnson Johnson with a short position of ImmunoGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and ImmunoGen.
Diversification Opportunities for Johnson Johnson and ImmunoGen
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Johnson and ImmunoGen is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen and Johnson Johnson 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 Johnson Johnson are associated (or correlated) with ImmunoGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmunoGen has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and ImmunoGen go up and down completely randomly.
Pair Corralation between Johnson Johnson and ImmunoGen
If you would invest 14,329 in Johnson Johnson on August 24, 2024 and sell it today you would earn a total of 1,221 from holding Johnson Johnson or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Johnson Johnson vs. ImmunoGen
Performance |
| Timeline |
| Johnson Johnson |
| ImmunoGen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Johnson Johnson and ImmunoGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and ImmunoGen
The main advantage of trading using opposite Johnson Johnson and ImmunoGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, ImmunoGen 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 ImmunoGen will offset losses from the drop in ImmunoGen's long position.| Johnson Johnson vs. Merck Company | Johnson Johnson vs. Pfizer Inc | Johnson Johnson vs. Small Cap Core | Johnson Johnson vs. Freedom Holding Corp |
| ImmunoGen vs. Madrigal Pharmaceuticals | ImmunoGen vs. TG Therapeutics | ImmunoGen vs. Terns Pharmaceuticals | ImmunoGen vs. Hepion Pharmaceuticals |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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