Correlation Between MediciNova and AC Immune
Can any of the company-specific risk be diversified away by investing in both MediciNova and AC Immune 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 MediciNova and AC Immune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediciNova and AC Immune, you can compare the effects of market volatilities on MediciNova and AC Immune 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 MediciNova with a short position of AC Immune. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediciNova and AC Immune.
Diversification Opportunities for MediciNova and AC Immune
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MediciNova and ACIU is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding MediciNova and AC Immune in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC Immune and MediciNova 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 MediciNova are associated (or correlated) with AC Immune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC Immune has no effect on the direction of MediciNova i.e., MediciNova and AC Immune go up and down completely randomly.
Pair Corralation between MediciNova and AC Immune
Given the investment horizon of 90 days MediciNova is expected to generate 2.27 times more return on investment than AC Immune. However, MediciNova is 2.27 times more volatile than AC Immune. It trades about 0.13 of its potential returns per unit of risk. AC Immune is currently generating about 0.13 per unit of risk. If you would invest 163.00 in MediciNova on August 29, 2024 and sell it today you would earn a total of 41.00 from holding MediciNova or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MediciNova vs. AC Immune
Performance |
| Timeline |
| MediciNova |
| AC Immune |
MediciNova and AC Immune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediciNova and AC Immune
The main advantage of trading using opposite MediciNova and AC Immune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediciNova position performs unexpectedly, AC Immune 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 AC Immune will offset losses from the drop in AC Immune's long position.| MediciNova vs. Bright Minds Biosciences | MediciNova vs. HP Inc | MediciNova vs. Intel | MediciNova vs. Chevron Corp |
| AC Immune vs. Pmv Pharmaceuticals | AC Immune vs. Eliem Therapeutics | AC Immune vs. MediciNova | AC Immune vs. Pharvaris BV |
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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