Correlation Between LianBio ADR and Immutep
Can any of the company-specific risk be diversified away by investing in both LianBio ADR and Immutep 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 LianBio ADR and Immutep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LianBio ADR and Immutep Ltd ADR, you can compare the effects of market volatilities on LianBio ADR and Immutep 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 LianBio ADR with a short position of Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of LianBio ADR and Immutep.
Diversification Opportunities for LianBio ADR and Immutep
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LianBio and Immutep is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding LianBio ADR and Immutep Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep Ltd ADR and LianBio ADR 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 LianBio ADR are associated (or correlated) with Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep Ltd ADR has no effect on the direction of LianBio ADR i.e., LianBio ADR and Immutep go up and down completely randomly.
Pair Corralation between LianBio ADR and Immutep
If you would invest 218.00 in LianBio ADR on September 1, 2024 and sell it today you would earn a total of 0.00 from holding LianBio ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
LianBio ADR vs. Immutep Ltd ADR
Performance |
| Timeline |
| LianBio ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Immutep Ltd ADR |
LianBio ADR and Immutep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LianBio ADR and Immutep
The main advantage of trading using opposite LianBio ADR and Immutep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LianBio ADR position performs unexpectedly, Immutep 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 Immutep will offset losses from the drop in Immutep's long position.| LianBio ADR vs. Sensei Biotherapeutics | LianBio ADR vs. NextCure | LianBio ADR vs. Nuvation Bio | LianBio ADR vs. Inozyme Pharma |
| Immutep vs. Ocean Biomedical | Immutep vs. Elevation Oncology | Immutep vs. Zura Bio Limited | Immutep vs. Cns 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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