Correlation Between Can Fite and ImmuCell

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

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

Diversification Opportunities for Can Fite and ImmuCell

-0.53

Correlation Coefficient

Can Fite  ImmuCell

Excellent diversification

The 3 months correlation between Can and ImmuCell is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Can Fite Biopharma and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and Can Fite 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 Can Fite Biopharma 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 Can Fite i.e., Can Fite and ImmuCell go up and down completely randomly.

Pair Corralation between Can Fite and ImmuCell

Given the investment horizon of 90 days Can Fite Biopharma is expected to under-perform the ImmuCell. In addition to that, Can Fite is 1.13 times more volatile than ImmuCell. It trades about -0.04 of its total potential returns per unit of risk. ImmuCell is currently generating about 0.11 per unit of volatility. If you would invest  413.00  in ImmuCell on December 1, 2024 and sell it today you would earn a total of  115.00  from holding ImmuCell or generate 27.85% return on investment over 90 days.

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

Can Fite Biopharma  vs.  ImmuCell

Can Fite Biopharma

Risk-Adjusted Performance

Very Weak

Over the last 90 days Can Fite Biopharma 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 nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ImmuCell

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Can Fite and ImmuCell

The main advantage of trading using opposite Can Fite and ImmuCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Can Fite 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 Can Fite Biopharma 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.