Correlation Between Mustang Bio and ImmunoGen
Can any of the company-specific risk be diversified away by investing in both Mustang Bio 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 Mustang Bio and ImmunoGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mustang Bio and ImmunoGen, you can compare the effects of market volatilities on Mustang Bio 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 Mustang Bio with a short position of ImmunoGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mustang Bio and ImmunoGen.
Diversification Opportunities for Mustang Bio and ImmunoGen
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mustang and ImmunoGen is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mustang Bio and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen and Mustang Bio 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 Mustang Bio 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 Mustang Bio i.e., Mustang Bio and ImmunoGen go up and down completely randomly.
Pair Corralation between Mustang Bio and ImmunoGen
If you would invest 154.00 in Mustang Bio on September 3, 2024 and sell it today you would lose (135.00) from holding Mustang Bio or give up 87.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Mustang Bio vs. ImmunoGen
Performance |
| Timeline |
| Mustang Bio |
| ImmunoGen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mustang Bio and ImmunoGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mustang Bio and ImmunoGen
The main advantage of trading using opposite Mustang Bio and ImmunoGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mustang Bio 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.| Mustang Bio vs. Checkpoint Therapeutics | Mustang Bio vs. Reviva Pharmaceuticals Holdings | Mustang Bio vs. Fortress Biotech Pref | Mustang Bio vs. Kodiak Sciences |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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