Correlation Between AC Immune and Immunocore Holdings

Can any of the company-specific risk be diversified away by investing in both AC Immune and Immunocore Holdings 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 AC Immune and Immunocore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AC Immune and Immunocore Holdings, you can compare the effects of market volatilities on AC Immune and Immunocore Holdings 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 AC Immune with a short position of Immunocore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AC Immune and Immunocore Holdings.

Diversification Opportunities for AC Immune and Immunocore Holdings

-0.33

Correlation Coefficient

AC Immune  Immunocore Holdings

Very good diversification

The 3 months correlation between ACIU and Immunocore is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding AC Immune and Immunocore Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunocore Holdings and AC Immune 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 AC Immune are associated (or correlated) with Immunocore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunocore Holdings has no effect on the direction of AC Immune i.e., AC Immune and Immunocore Holdings go up and down completely randomly.

Pair Corralation between AC Immune and Immunocore Holdings

Given the investment horizon of 90 days AC Immune is expected to generate 1.46 times more return on investment than Immunocore Holdings. However, AC Immune is 1.46 times more volatile than Immunocore Holdings. It trades about 0.06 of its potential returns per unit of risk. Immunocore Holdings is currently generating about -0.05 per unit of risk. If you would invest  306.00  in AC Immune on August 31, 2024 and sell it today you would earn a total of  30.00  from holding AC Immune or generate 9.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AC Immune  vs.  Immunocore Holdings

AC Immune

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AC Immune are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward indicators, AC Immune unveiled solid returns over the last few months and may actually be approaching a breakup point.

Immunocore Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immunocore Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with AC Immune and Immunocore Holdings

The main advantage of trading using opposite AC Immune and Immunocore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AC Immune position performs unexpectedly, Immunocore Holdings 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 Immunocore Holdings will offset losses from the drop in Immunocore Holdings' long position.

The idea behind AC Immune and Immunocore Holdings 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.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.