Correlation Between Denali Therapeutics and ImmunoGen
Can any of the company-specific risk be diversified away by investing in both Denali 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 Denali Therapeutics and ImmunoGen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Denali Therapeutics and ImmunoGen, you can compare the effects of market volatilities on Denali 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 Denali Therapeutics with a short position of ImmunoGen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Denali Therapeutics and ImmunoGen.
Diversification Opportunities for Denali Therapeutics and ImmunoGen
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Denali and ImmunoGen is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Denali Therapeutics and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen and Denali 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 Denali Therapeutics 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 Denali Therapeutics i.e., Denali Therapeutics and ImmunoGen go up and down completely randomly.
Pair Corralation between Denali Therapeutics and ImmunoGen
Given the investment horizon of 90 days Denali Therapeutics is expected to generate 3280.5 times less return on investment than ImmunoGen. In addition to that, Denali Therapeutics is 1.37 times more volatile than ImmunoGen. It trades about 0.0 of its total potential returns per unit of risk. ImmunoGen is currently generating about 0.22 per unit of volatility. If you would invest 1,348 in ImmunoGen on September 6, 2024 and sell it today you would earn a total of 472.00 from holding ImmunoGen or generate 35.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 12.44% |
Values | Daily Returns |
Denali Therapeutics vs. ImmunoGen
Performance |
Timeline |
Denali Therapeutics |
ImmunoGen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Denali Therapeutics and ImmunoGen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Denali Therapeutics and ImmunoGen
The main advantage of trading using opposite Denali Therapeutics and ImmunoGen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Denali 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.Denali Therapeutics vs. Candel Therapeutics | Denali Therapeutics vs. Cingulate Warrants | Denali Therapeutics vs. Unicycive Therapeutics | Denali Therapeutics vs. Cardio Diagnostics Holdings |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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