Correlation Between Pharming Group and ImmunoCellular Therapeutics
Can any of the company-specific risk be diversified away by investing in both Pharming Group and ImmunoCellular Therapeutics 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 Pharming Group and ImmunoCellular Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pharming Group NV and ImmunoCellular Therapeutics, you can compare the effects of market volatilities on Pharming Group and ImmunoCellular Therapeutics 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 Pharming Group with a short position of ImmunoCellular Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pharming Group and ImmunoCellular Therapeutics.
Diversification Opportunities for Pharming Group and ImmunoCellular Therapeutics
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pharming and ImmunoCellular is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pharming Group NV and ImmunoCellular Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoCellular Therapeutics and Pharming Group 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 Pharming Group NV are associated (or correlated) with ImmunoCellular Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmunoCellular Therapeutics has no effect on the direction of Pharming Group i.e., Pharming Group and ImmunoCellular Therapeutics go up and down completely randomly.
Pair Corralation between Pharming Group and ImmunoCellular Therapeutics
If you would invest 47.00 in ImmunoCellular Therapeutics on August 31, 2024 and sell it today you would earn a total of 0.00 from holding ImmunoCellular Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
Pharming Group NV vs. ImmunoCellular Therapeutics
Performance |
| Timeline |
| Pharming Group NV |
| ImmunoCellular Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pharming Group and ImmunoCellular Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pharming Group and ImmunoCellular Therapeutics
The main advantage of trading using opposite Pharming Group and ImmunoCellular Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pharming Group position performs unexpectedly, ImmunoCellular Therapeutics 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 ImmunoCellular Therapeutics will offset losses from the drop in ImmunoCellular Therapeutics' long position.| Pharming Group vs. Rigel Pharmaceuticals | Pharming Group vs. Geron | Pharming Group vs. Verastem | Pharming Group vs. Immutep Ltd ADR |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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