Correlation Between SAB Biotherapeutics and Immatics
Can any of the company-specific risk be diversified away by investing in both SAB Biotherapeutics and Immatics 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 SAB Biotherapeutics and Immatics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAB Biotherapeutics and Immatics NV, you can compare the effects of market volatilities on SAB Biotherapeutics and Immatics 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 SAB Biotherapeutics with a short position of Immatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAB Biotherapeutics and Immatics.
Diversification Opportunities for SAB Biotherapeutics and Immatics
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SAB and Immatics is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SAB Biotherapeutics and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV and SAB Biotherapeutics 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 SAB Biotherapeutics are associated (or correlated) with Immatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics NV has no effect on the direction of SAB Biotherapeutics i.e., SAB Biotherapeutics and Immatics go up and down completely randomly.
Pair Corralation between SAB Biotherapeutics and Immatics
Assuming the 90 days horizon SAB Biotherapeutics is expected to generate 11.98 times more return on investment than Immatics. However, SAB Biotherapeutics is 11.98 times more volatile than Immatics NV. It trades about 0.17 of its potential returns per unit of risk. Immatics NV is currently generating about -0.45 per unit of risk. If you would invest 5.00 in SAB Biotherapeutics on August 28, 2024 and sell it today you would earn a total of 1.88 from holding SAB Biotherapeutics or generate 37.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
SAB Biotherapeutics vs. Immatics NV
Performance |
| Timeline |
| SAB Biotherapeutics |
| Immatics NV |
SAB Biotherapeutics and Immatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAB Biotherapeutics and Immatics
The main advantage of trading using opposite SAB Biotherapeutics and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAB Biotherapeutics position performs unexpectedly, Immatics 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 Immatics will offset losses from the drop in Immatics' long position.| SAB Biotherapeutics vs. SAB Biotherapeutics | SAB Biotherapeutics vs. Jasper Therapeutics | SAB Biotherapeutics vs. NRx Pharmaceuticals |
| Immatics vs. Crinetics Pharmaceuticals | Immatics vs. Alx Oncology Holdings | Immatics vs. Bioatla | Immatics vs. Aerovate Therapeutics |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |