Correlation Between Karuna Therapeutics and Immix Biopharma
Can any of the company-specific risk be diversified away by investing in both Karuna Therapeutics and Immix Biopharma 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 Karuna Therapeutics and Immix Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karuna Therapeutics and Immix Biopharma, you can compare the effects of market volatilities on Karuna Therapeutics and Immix Biopharma 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 Karuna Therapeutics with a short position of Immix Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karuna Therapeutics and Immix Biopharma.
Diversification Opportunities for Karuna Therapeutics and Immix Biopharma
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Karuna and Immix is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Karuna Therapeutics and Immix Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immix Biopharma and Karuna Therapeutics 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 Karuna Therapeutics are associated (or correlated) with Immix Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immix Biopharma has no effect on the direction of Karuna Therapeutics i.e., Karuna Therapeutics and Immix Biopharma go up and down completely randomly.
Pair Corralation between Karuna Therapeutics and Immix Biopharma
Given the investment horizon of 90 days Karuna Therapeutics is expected to generate 100.5 times less return on investment than Immix Biopharma. But when comparing it to its historical volatility, Karuna Therapeutics is 2.93 times less risky than Immix Biopharma. It trades about 0.0 of its potential returns per unit of risk. Immix Biopharma is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 146.00 in Immix Biopharma on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Immix Biopharma or generate 44.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
Karuna Therapeutics vs. Immix Biopharma
Performance |
| Timeline |
| Karuna Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Immix Biopharma |
Karuna Therapeutics and Immix Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karuna Therapeutics and Immix Biopharma
The main advantage of trading using opposite Karuna Therapeutics and Immix Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karuna Therapeutics position performs unexpectedly, Immix Biopharma 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 Immix Biopharma will offset losses from the drop in Immix Biopharma's long position.| Karuna Therapeutics vs. Blueprint Medicines Corp | Karuna Therapeutics vs. Amylyx Pharmaceuticals | Karuna Therapeutics vs. Day One Biopharmaceuticals | Karuna Therapeutics vs. X4 Pharmaceuticals |
| Immix Biopharma vs. DiaMedica Therapeutics | Immix Biopharma vs. Lyra Therapeutics | Immix Biopharma vs. Centessa Pharmaceuticals PLC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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