Correlation Between AN2 Therapeutics and ImmunoCellular Therapeutics

Can any of the company-specific risk be diversified away by investing in both AN2 Therapeutics and ImmunoCellular Therapeutics 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 AN2 Therapeutics and ImmunoCellular Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AN2 Therapeutics and ImmunoCellular Therapeutics, you can compare the effects of market volatilities on AN2 Therapeutics and ImmunoCellular Therapeutics 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 AN2 Therapeutics with a short position of ImmunoCellular Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AN2 Therapeutics and ImmunoCellular Therapeutics.

Diversification Opportunities for AN2 Therapeutics and ImmunoCellular Therapeutics

0.0

Correlation Coefficient

AN2 Therapeutics  ImmunoCellular Therapeutics

Pay attention - limited upside

The 3 months correlation between AN2 and ImmunoCellular is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AN2 Therapeutics and ImmunoCellular Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoCellular Therapeutics and AN2 Therapeutics 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 AN2 Therapeutics are associated (or correlated) with ImmunoCellular Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmunoCellular Therapeutics has no effect on the direction of AN2 Therapeutics i.e., AN2 Therapeutics and ImmunoCellular Therapeutics go up and down completely randomly.

Pair Corralation between AN2 Therapeutics and ImmunoCellular Therapeutics

If you would invest  136.00  in AN2 Therapeutics on December 24, 2024 and sell it today you would earn a total of  15.00  from holding AN2 Therapeutics or generate 11.03% return on investment over 90 days.

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

AN2 Therapeutics  vs.  ImmunoCellular Therapeutics

AN2 Therapeutics

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AN2 Therapeutics are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, AN2 Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

ImmunoCellular Therapeutics

Risk-Adjusted Performance

Very Weak

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

Pair Trading with AN2 Therapeutics and ImmunoCellular Therapeutics

The main advantage of trading using opposite AN2 Therapeutics and ImmunoCellular Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AN2 Therapeutics position performs unexpectedly, ImmunoCellular Therapeutics 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 ImmunoCellular Therapeutics will offset losses from the drop in ImmunoCellular Therapeutics' long position.

The idea behind AN2 Therapeutics and ImmunoCellular Therapeutics 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.