Correlation Between 23Andme Holding and Immatics Biotechnologies
Can any of the company-specific risk be diversified away by investing in both 23Andme Holding and Immatics Biotechnologies 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 23Andme Holding and Immatics Biotechnologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 23Andme Holding Co and immatics biotechnologies GmbH, you can compare the effects of market volatilities on 23Andme Holding and Immatics Biotechnologies 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 23Andme Holding with a short position of Immatics Biotechnologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 23Andme Holding and Immatics Biotechnologies.
Diversification Opportunities for 23Andme Holding and Immatics Biotechnologies
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 23Andme and Immatics is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding 23Andme Holding Co and immatics biotechnologies GmbH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics Biotechnologies and 23Andme Holding 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 23Andme Holding Co are associated (or correlated) with Immatics Biotechnologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics Biotechnologies has no effect on the direction of 23Andme Holding i.e., 23Andme Holding and Immatics Biotechnologies go up and down completely randomly.
Pair Corralation between 23Andme Holding and Immatics Biotechnologies
Allowing for the 90-day total investment horizon 23Andme Holding Co is expected to generate 1.0 times more return on investment than Immatics Biotechnologies. However, 23Andme Holding Co is 1.0 times less risky than Immatics Biotechnologies. It trades about -0.21 of its potential returns per unit of risk. immatics biotechnologies GmbH is currently generating about -0.63 per unit of risk. If you would invest 485.00 in 23Andme Holding Co on August 28, 2024 and sell it today you would lose (169.00) from holding 23Andme Holding Co or give up 34.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.36% |
| Values | Daily Returns |
23Andme Holding Co vs. immatics biotechnologies GmbH
Performance |
| Timeline |
| 23Andme Holding |
| Immatics Biotechnologies |
23Andme Holding and Immatics Biotechnologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 23Andme Holding and Immatics Biotechnologies
The main advantage of trading using opposite 23Andme Holding and Immatics Biotechnologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 23Andme Holding position performs unexpectedly, Immatics Biotechnologies 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 Immatics Biotechnologies will offset losses from the drop in Immatics Biotechnologies' long position.| 23Andme Holding vs. Eliem Therapeutics | 23Andme Holding vs. Scpharmaceuticals | 23Andme Holding vs. Milestone Pharmaceuticals | 23Andme Holding vs. Seres Therapeutics |
| Immatics Biotechnologies vs. Eliem Therapeutics | Immatics Biotechnologies vs. Scpharmaceuticals | Immatics Biotechnologies vs. Milestone Pharmaceuticals | Immatics Biotechnologies vs. Seres Therapeutics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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