Correlation Between 180 Life and Immix Biopharma

Can any of the company-specific risk be diversified away by investing in both 180 Life 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 180 Life and Immix Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 180 Life Sciences and Immix Biopharma, you can compare the effects of market volatilities on 180 Life 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 180 Life with a short position of Immix Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of 180 Life and Immix Biopharma.

Diversification Opportunities for 180 Life and Immix Biopharma

-0.34

Correlation Coefficient

180 Life  Immix Biopharma

Very good diversification

The 3 months correlation between 180 and Immix is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding 180 Life Sciences and Immix Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immix Biopharma and 180 Life 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 180 Life Sciences 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 180 Life i.e., 180 Life and Immix Biopharma go up and down completely randomly.

Pair Corralation between 180 Life and Immix Biopharma

Given the investment horizon of 90 days 180 Life Sciences is expected to generate 2.14 times more return on investment than Immix Biopharma. However, 180 Life is 2.14 times more volatile than Immix Biopharma. It trades about -0.01 of its potential returns per unit of risk. Immix Biopharma is currently generating about -0.02 per unit of risk. If you would invest  210.00  in 180 Life Sciences on October 6, 2024 and sell it today you would lose (38.00) from holding 180 Life Sciences or give up 18.1% of portfolio value over 90 days.

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

180 Life Sciences  vs.  Immix Biopharma

180 Life Sciences

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 180 Life Sciences are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, 180 Life reported solid returns over the last few months and may actually be approaching a breakup point.

Immix Biopharma

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Immix Biopharma are ranked lower than 11 (%) 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 180 Life and Immix Biopharma

The main advantage of trading using opposite 180 Life and Immix Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 180 Life 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 180 Life Sciences 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.