Correlation Between NewAmsterdam Pharma and Immunome
Can any of the company-specific risk be diversified away by investing in both NewAmsterdam Pharma and Immunome 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 NewAmsterdam Pharma and Immunome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewAmsterdam Pharma and Immunome, you can compare the effects of market volatilities on NewAmsterdam Pharma and Immunome 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 NewAmsterdam Pharma with a short position of Immunome. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewAmsterdam Pharma and Immunome.
Diversification Opportunities for NewAmsterdam Pharma and Immunome
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NewAmsterdam and Immunome is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding NewAmsterdam Pharma and Immunome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunome and NewAmsterdam Pharma 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 NewAmsterdam Pharma are associated (or correlated) with Immunome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunome has no effect on the direction of NewAmsterdam Pharma i.e., NewAmsterdam Pharma and Immunome go up and down completely randomly.
Pair Corralation between NewAmsterdam Pharma and Immunome
Given the investment horizon of 90 days NewAmsterdam Pharma is expected to generate 1.76 times less return on investment than Immunome. But when comparing it to its historical volatility, NewAmsterdam Pharma is 1.19 times less risky than Immunome. It trades about 0.04 of its potential returns per unit of risk. Immunome is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 531.00 in Immunome on September 1, 2024 and sell it today you would earn a total of 824.00 from holding Immunome or generate 155.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewAmsterdam Pharma vs. Immunome
Performance |
| Timeline |
| NewAmsterdam Pharma |
| Immunome |
NewAmsterdam Pharma and Immunome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewAmsterdam Pharma and Immunome
The main advantage of trading using opposite NewAmsterdam Pharma and Immunome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewAmsterdam Pharma position performs unexpectedly, Immunome 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 Immunome will offset losses from the drop in Immunome's long position.| NewAmsterdam Pharma vs. Monte Rosa Therapeutics | NewAmsterdam Pharma vs. Inventiva Sa | NewAmsterdam Pharma vs. Cullinan Oncology LLC | NewAmsterdam Pharma vs. Compass Therapeutics |
| Immunome vs. Anebulo Pharmaceuticals | Immunome vs. Adagene | Immunome vs. Acrivon Therapeutics, Common | Immunome vs. AnaptysBio |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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