Correlation Between Prometheus Biosciences and ImmunoGen
Can any of the company-specific risk be diversified away by investing in both Prometheus Biosciences and ImmunoGen 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 Prometheus Biosciences and ImmunoGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prometheus Biosciences and ImmunoGen, you can compare the effects of market volatilities on Prometheus Biosciences and ImmunoGen 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 Prometheus Biosciences with a short position of ImmunoGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prometheus Biosciences and ImmunoGen.
Diversification Opportunities for Prometheus Biosciences and ImmunoGen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prometheus and ImmunoGen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Prometheus Biosciences and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen and Prometheus Biosciences 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 Prometheus Biosciences are associated (or correlated) with ImmunoGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmunoGen has no effect on the direction of Prometheus Biosciences i.e., Prometheus Biosciences and ImmunoGen go up and down completely randomly.
Pair Corralation between Prometheus Biosciences and ImmunoGen
If you would invest (100.00) in ImmunoGen on November 9, 2024 and sell it today you would earn a total of 100.00 from holding ImmunoGen or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prometheus Biosciences vs. ImmunoGen
Performance |
| Timeline |
| Prometheus Biosciences |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| ImmunoGen |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Prometheus Biosciences and ImmunoGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prometheus Biosciences and ImmunoGen
The main advantage of trading using opposite Prometheus Biosciences and ImmunoGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prometheus Biosciences position performs unexpectedly, ImmunoGen 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 ImmunoGen will offset losses from the drop in ImmunoGen's long position.| Prometheus Biosciences vs. Apellis Pharmaceuticals | Prometheus Biosciences vs. Akero Therapeutics | Prometheus Biosciences vs. Immunovant | Prometheus Biosciences vs. Madrigal Pharmaceuticals |
| ImmunoGen vs. Madrigal Pharmaceuticals | ImmunoGen vs. TG Therapeutics | ImmunoGen vs. Terns Pharmaceuticals | ImmunoGen vs. Hepion Pharmaceuticals |
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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