Correlation Between TG Therapeutics and ImmunoGen
Can any of the company-specific risk be diversified away by investing in both TG Therapeutics 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 TG Therapeutics and ImmunoGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TG Therapeutics and ImmunoGen, you can compare the effects of market volatilities on TG Therapeutics 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 TG Therapeutics with a short position of ImmunoGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of TG Therapeutics and ImmunoGen.
Diversification Opportunities for TG Therapeutics and ImmunoGen
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TGTX and ImmunoGen is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding TG Therapeutics and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen and TG Therapeutics 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 TG Therapeutics 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 TG Therapeutics i.e., TG Therapeutics and ImmunoGen go up and down completely randomly.
Pair Corralation between TG Therapeutics and ImmunoGen
Given the investment horizon of 90 days TG Therapeutics is expected to generate 2.62 times less return on investment than ImmunoGen. But when comparing it to its historical volatility, TG Therapeutics is 2.08 times less risky than ImmunoGen. It trades about 0.08 of its potential returns per unit of risk. ImmunoGen is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 530.00 in ImmunoGen on August 27, 2024 and sell it today you would earn a total of 1,290 from holding ImmunoGen or generate 243.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
TG Therapeutics vs. ImmunoGen
Performance |
| Timeline |
| TG Therapeutics |
| ImmunoGen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TG Therapeutics and ImmunoGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TG Therapeutics and ImmunoGen
The main advantage of trading using opposite TG Therapeutics and ImmunoGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TG Therapeutics 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.| TG Therapeutics vs. Madrigal Pharmaceuticals | TG Therapeutics vs. Terns Pharmaceuticals | TG Therapeutics vs. Hepion Pharmaceuticals | TG Therapeutics vs. Exelixis |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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