Correlation Between Caribou Biosciences and Immuneering Corp

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

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

Diversification Opportunities for Caribou Biosciences and Immuneering Corp

-0.32

Correlation Coefficient

Caribou Biosciences  Immuneering Corp

Very good diversification

The 3 months correlation between Caribou and Immuneering is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Caribou Biosciences and Immuneering Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuneering Corp and Caribou Biosciences 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 Caribou Biosciences are associated (or correlated) with Immuneering Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuneering Corp has no effect on the direction of Caribou Biosciences i.e., Caribou Biosciences and Immuneering Corp go up and down completely randomly.

Pair Corralation between Caribou Biosciences and Immuneering Corp

Given the investment horizon of 90 days Caribou Biosciences is expected to under-perform the Immuneering Corp. But the stock apears to be less risky and, when comparing its historical volatility, Caribou Biosciences is 1.62 times less risky than Immuneering Corp. The stock trades about -0.28 of its potential returns per unit of risk. The Immuneering Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  209.00  in Immuneering Corp on September 29, 2024 and sell it today you would earn a total of  24.00  from holding Immuneering Corp or generate 11.48% return on investment over 90 days.

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

Caribou Biosciences  vs.  Immuneering Corp

Caribou Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Caribou Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental drivers remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Immuneering Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immuneering Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Immuneering Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Caribou Biosciences and Immuneering Corp

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

The idea behind Caribou Biosciences and Immuneering Corp 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.