Correlation Between PolyPid and Immunome
Can any of the company-specific risk be diversified away by investing in both PolyPid 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 PolyPid and Immunome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PolyPid and Immunome, you can compare the effects of market volatilities on PolyPid 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 PolyPid with a short position of Immunome. Check out your portfolio center. Please also check ongoing floating volatility patterns of PolyPid and Immunome.
Diversification Opportunities for PolyPid and Immunome
Good diversification
The 3 months correlation between PolyPid and Immunome is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PolyPid and Immunome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunome and PolyPid 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 PolyPid 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 PolyPid i.e., PolyPid and Immunome go up and down completely randomly.
Pair Corralation between PolyPid and Immunome
Given the investment horizon of 90 days PolyPid is expected to under-perform the Immunome. But the stock apears to be less risky and, when comparing its historical volatility, PolyPid is 1.04 times less risky than Immunome. The stock trades about -0.05 of its potential returns per unit of risk. The Immunome is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 314.00 in Immunome on September 12, 2024 and sell it today you would earn a total of 1,013 from holding Immunome or generate 322.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PolyPid vs. Immunome
Performance |
| Timeline |
| PolyPid |
| Immunome |
PolyPid and Immunome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PolyPid and Immunome
The main advantage of trading using opposite PolyPid and Immunome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PolyPid 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.The idea behind PolyPid and Immunome pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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