Correlation Between Lineage Cell and ImmuCell
Can any of the company-specific risk be diversified away by investing in both Lineage Cell and ImmuCell 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 Lineage Cell and ImmuCell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lineage Cell Therapeutics and ImmuCell, you can compare the effects of market volatilities on Lineage Cell and ImmuCell 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 Lineage Cell with a short position of ImmuCell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lineage Cell and ImmuCell.
Diversification Opportunities for Lineage Cell and ImmuCell
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lineage and ImmuCell is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lineage Cell Therapeutics and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and Lineage Cell 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 Lineage Cell Therapeutics are associated (or correlated) with ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of Lineage Cell i.e., Lineage Cell and ImmuCell go up and down completely randomly.
Pair Corralation between Lineage Cell and ImmuCell
Given the investment horizon of 90 days Lineage Cell Therapeutics is expected to under-perform the ImmuCell. In addition to that, Lineage Cell is 5.15 times more volatile than ImmuCell. It trades about -0.15 of its total potential returns per unit of risk. ImmuCell is currently generating about 0.11 per unit of volatility. If you would invest 357.00 in ImmuCell on August 29, 2024 and sell it today you would earn a total of 13.00 from holding ImmuCell or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lineage Cell Therapeutics vs. ImmuCell
Performance |
| Timeline |
| Lineage Cell Therapeutics |
| ImmuCell |
Lineage Cell and ImmuCell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lineage Cell and ImmuCell
The main advantage of trading using opposite Lineage Cell and ImmuCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lineage Cell position performs unexpectedly, ImmuCell 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 ImmuCell will offset losses from the drop in ImmuCell's long position.| Lineage Cell vs. MAIA Biotechnology | Lineage Cell vs. Armata Pharmaceuticals | Lineage Cell vs. Portage Biotech | Lineage Cell vs. Cadrenal Therapeutics, Common |
| ImmuCell vs. Transgene SA | ImmuCell vs. Alpha Cognition | ImmuCell vs. Fennec Pharmaceuticals | ImmuCell vs. Lipella Pharmaceuticals Common |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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