Correlation Between Verastem and ImmunoGen
Can any of the company-specific risk be diversified away by investing in both Verastem 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 Verastem and ImmunoGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verastem and ImmunoGen, you can compare the effects of market volatilities on Verastem 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 Verastem with a short position of ImmunoGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verastem and ImmunoGen.
Diversification Opportunities for Verastem and ImmunoGen
Pay attention - limited upside
The 3 months correlation between Verastem and ImmunoGen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Verastem and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen and Verastem 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 Verastem 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 Verastem i.e., Verastem and ImmunoGen go up and down completely randomly.
Pair Corralation between Verastem and ImmunoGen
If you would invest 250.00 in Verastem on November 28, 2024 and sell it today you would earn a total of 292.00 from holding Verastem or generate 116.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Verastem vs. ImmunoGen
Performance |
| Timeline |
| Verastem |
| ImmunoGen |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Verastem and ImmunoGen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verastem and ImmunoGen
The main advantage of trading using opposite Verastem and ImmunoGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verastem 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.The idea behind Verastem and ImmunoGen 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.| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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