Correlation Between Coya Therapeutics, and ImmunoGen

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

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

Diversification Opportunities for Coya Therapeutics, and ImmunoGen

0.25

Correlation Coefficient

Coya Therapeutics,  ImmunoGen

Modest diversification

The 3 months correlation between Coya and ImmunoGen is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Coya Therapeutics, Common and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen and Coya 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 Coya Therapeutics, Common are associated (or correlated) with ImmunoGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmunoGen has no effect on the direction of Coya Therapeutics, i.e., Coya Therapeutics, and ImmunoGen go up and down completely randomly.

Pair Corralation between Coya Therapeutics, and ImmunoGen

Given the investment horizon of 90 days Coya Therapeutics, is expected to generate 8.06 times less return on investment than ImmunoGen. But when comparing it to its historical volatility, Coya Therapeutics, Common is 2.56 times less risky than ImmunoGen. It trades about 0.04 of its potential returns per unit of risk. ImmunoGen is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  463.00  in ImmunoGen on September 8, 2024 and sell it today you would earn a total of  1,357  from holding ImmunoGen or generate 293.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	30.47%
Values	Daily Returns

Coya Therapeutics, Common  vs.  ImmunoGen

Coya Therapeutics, Common

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Coya Therapeutics, Common are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Coya Therapeutics, sustained solid returns over the last few months and may actually be approaching a breakup point.

ImmunoGen

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Coya Therapeutics, and ImmunoGen

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

The idea behind Coya Therapeutics, Common and ImmunoGen 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.