Correlation Between Lifecore Biomedical and Immunocore Holdings
Can any of the company-specific risk be diversified away by investing in both Lifecore Biomedical and Immunocore Holdings 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 Lifecore Biomedical and Immunocore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifecore Biomedical and Immunocore Holdings, you can compare the effects of market volatilities on Lifecore Biomedical and Immunocore Holdings 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 Lifecore Biomedical with a short position of Immunocore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifecore Biomedical and Immunocore Holdings.
Diversification Opportunities for Lifecore Biomedical and Immunocore Holdings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lifecore and Immunocore is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Lifecore Biomedical and Immunocore Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunocore Holdings and Lifecore Biomedical 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 Lifecore Biomedical are associated (or correlated) with Immunocore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunocore Holdings has no effect on the direction of Lifecore Biomedical i.e., Lifecore Biomedical and Immunocore Holdings go up and down completely randomly.
Pair Corralation between Lifecore Biomedical and Immunocore Holdings
Given the investment horizon of 90 days Lifecore Biomedical is expected to generate 1.93 times more return on investment than Immunocore Holdings. However, Lifecore Biomedical is 1.93 times more volatile than Immunocore Holdings. It trades about 0.06 of its potential returns per unit of risk. Immunocore Holdings is currently generating about -0.03 per unit of risk. If you would invest 304.00 in Lifecore Biomedical on December 12, 2024 and sell it today you would earn a total of 346.00 from holding Lifecore Biomedical or generate 113.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifecore Biomedical vs. Immunocore Holdings
Performance |
| Timeline |
| Lifecore Biomedical |
| Immunocore Holdings |
Lifecore Biomedical and Immunocore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifecore Biomedical and Immunocore Holdings
The main advantage of trading using opposite Lifecore Biomedical and Immunocore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifecore Biomedical position performs unexpectedly, Immunocore Holdings 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 Immunocore Holdings will offset losses from the drop in Immunocore Holdings' long position.| Lifecore Biomedical vs. Shuttle Pharmaceuticals | ||
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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