Correlation Between CTi Biopharma and Immunitybio

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

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

Diversification Opportunities for CTi Biopharma and Immunitybio

0.0

Correlation Coefficient

CTi Biopharma  Immunitybio

Pay attention - limited upside

The 3 months correlation between CTi and Immunitybio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CTi Biopharma Corp and Immunitybio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunitybio and CTi Biopharma 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 CTi Biopharma Corp are associated (or correlated) with Immunitybio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunitybio has no effect on the direction of CTi Biopharma i.e., CTi Biopharma and Immunitybio go up and down completely randomly.

Pair Corralation between CTi Biopharma and Immunitybio

If you would invest  268.00  in Immunitybio on December 29, 2024 and sell it today you would earn a total of  68.00  from holding Immunitybio or generate 25.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CTi Biopharma Corp  vs.  Immunitybio

CTi Biopharma Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days CTi Biopharma Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, CTi Biopharma is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Immunitybio

Risk-Adjusted Performance

Modest

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

Pair Trading with CTi Biopharma and Immunitybio

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

The idea behind CTi Biopharma Corp and Immunitybio 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.