Correlation Between Vera Therapeutics and Immatics
Can any of the company-specific risk be diversified away by investing in both Vera Therapeutics 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 Vera Therapeutics and Immatics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vera Therapeutics and Immatics NV, you can compare the effects of market volatilities on Vera Therapeutics 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 Vera Therapeutics with a short position of Immatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vera Therapeutics and Immatics.
Diversification Opportunities for Vera Therapeutics and Immatics
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vera and Immatics is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Vera Therapeutics and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV and Vera 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 Vera Therapeutics 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 Vera Therapeutics i.e., Vera Therapeutics and Immatics go up and down completely randomly.
Pair Corralation between Vera Therapeutics and Immatics
Given the investment horizon of 90 days Vera Therapeutics is expected to generate 1.9 times more return on investment than Immatics. However, Vera Therapeutics is 1.9 times more volatile than Immatics NV. It trades about 0.02 of its potential returns per unit of risk. Immatics NV is currently generating about -0.45 per unit of risk. If you would invest 4,734 in Vera Therapeutics on August 28, 2024 and sell it today you would lose (7.00) from holding Vera Therapeutics or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vera Therapeutics vs. Immatics NV
Performance |
| Timeline |
| Vera Therapeutics |
| Immatics NV |
Vera Therapeutics and Immatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vera Therapeutics and Immatics
The main advantage of trading using opposite Vera Therapeutics and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vera Therapeutics 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.| Vera Therapeutics vs. Third Harmonic Bio | Vera Therapeutics vs. Cullinan Oncology LLC | Vera Therapeutics vs. Edgewise Therapeutics | Vera Therapeutics vs. Rallybio Corp |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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