Correlation Between Affimed NV and Immunocore Holdings
Can any of the company-specific risk be diversified away by investing in both Affimed NV 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 Affimed NV and Immunocore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affimed NV and Immunocore Holdings, you can compare the effects of market volatilities on Affimed NV 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 Affimed NV with a short position of Immunocore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affimed NV and Immunocore Holdings.
Diversification Opportunities for Affimed NV and Immunocore Holdings
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Affimed and Immunocore is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Affimed NV and Immunocore Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunocore Holdings and Affimed NV 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 Affimed NV 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 Affimed NV i.e., Affimed NV and Immunocore Holdings go up and down completely randomly.
Pair Corralation between Affimed NV and Immunocore Holdings
Given the investment horizon of 90 days Affimed NV is expected to under-perform the Immunocore Holdings. In addition to that, Affimed NV is 1.35 times more volatile than Immunocore Holdings. It trades about -0.19 of its total potential returns per unit of risk. Immunocore Holdings is currently generating about 0.02 per unit of volatility. If you would invest 2,903 in Immunocore Holdings on December 30, 2024 and sell it today you would earn a total of 55.00 from holding Immunocore Holdings or generate 1.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Affimed NV vs. Immunocore Holdings
Performance |
Timeline |
Affimed NV |
Immunocore Holdings |
Affimed NV and Immunocore Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Affimed NV and Immunocore Holdings
The main advantage of trading using opposite Affimed NV and Immunocore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affimed NV 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.Affimed NV vs. ADC Therapeutics SA | Affimed NV vs. Agenus Inc | Affimed NV vs. X4 Pharmaceuticals | Affimed NV vs. Terns Pharmaceuticals |
Immunocore Holdings vs. Arcellx | Immunocore Holdings vs. Ventyx Biosciences | Immunocore Holdings vs. Vaxcyte | Immunocore Holdings vs. Nuvalent |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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