Correlation Between Ambrx Biopharma and Immix Biopharma

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

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

Diversification Opportunities for Ambrx Biopharma and Immix Biopharma

0.18

Correlation Coefficient

Ambrx Biopharma  Immix Biopharma

Average diversification

The 3 months correlation between Ambrx and Immix is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ambrx Biopharma American and Immix Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immix Biopharma and Ambrx Biopharma 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 Ambrx Biopharma American are associated (or correlated) with Immix Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immix Biopharma has no effect on the direction of Ambrx Biopharma i.e., Ambrx Biopharma and Immix Biopharma go up and down completely randomly.

Pair Corralation between Ambrx Biopharma and Immix Biopharma

If you would invest  172.00  in Immix Biopharma on September 13, 2024 and sell it today you would earn a total of  60.00  from holding Immix Biopharma or generate 34.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Ambrx Biopharma American  vs.  Immix Biopharma

Ambrx Biopharma American

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ambrx Biopharma American has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Ambrx Biopharma is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Immix Biopharma

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Immix Biopharma are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Immix Biopharma showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ambrx Biopharma and Immix Biopharma

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

The idea behind Ambrx Biopharma American and Immix Biopharma 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.