Correlation Between AGE Old and ImmuCell

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

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

Diversification Opportunities for AGE Old and ImmuCell

0.0

Correlation Coefficient

AGE Old  ImmuCell

Pay attention - limited upside

The 3 months correlation between AGE and ImmuCell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGE Old and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and AGE Old 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 AGE Old are associated (or correlated) with ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of AGE Old i.e., AGE Old and ImmuCell go up and down completely randomly.

Pair Corralation between AGE Old and ImmuCell

If you would invest  482.00  in ImmuCell on December 28, 2024 and sell it today you would earn a total of  8.00  from holding ImmuCell or generate 1.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AGE Old  vs.  ImmuCell

AGE Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGE Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, AGE Old is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

ImmuCell

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, ImmuCell is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with AGE Old and ImmuCell

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

The idea behind AGE Old and ImmuCell 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..