Correlation Between Atara Biotherapeutics and Immunic

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

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

Diversification Opportunities for Atara Biotherapeutics and Immunic

-0.23

Correlation Coefficient

Atara Biotherapeutics  Immunic

Very good diversification

The 3 months correlation between Atara and Immunic is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Atara Biotherapeutics and Immunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunic and Atara Biotherapeutics 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 Atara Biotherapeutics are associated (or correlated) with Immunic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunic has no effect on the direction of Atara Biotherapeutics i.e., Atara Biotherapeutics and Immunic go up and down completely randomly.

Pair Corralation between Atara Biotherapeutics and Immunic

Given the investment horizon of 90 days Atara Biotherapeutics is expected to under-perform the Immunic. In addition to that, Atara Biotherapeutics is 2.41 times more volatile than Immunic. It trades about -0.06 of its total potential returns per unit of risk. Immunic is currently generating about 0.09 per unit of volatility. If you would invest  103.00  in Immunic on December 27, 2024 and sell it today you would earn a total of  17.00  from holding Immunic or generate 16.5% return on investment over 90 days.

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

Atara Biotherapeutics  vs.  Immunic

Atara Biotherapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atara Biotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Immunic

Risk-Adjusted Performance

Modest

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

Pair Trading with Atara Biotherapeutics and Immunic

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

The idea behind Atara Biotherapeutics and Immunic 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.