Correlation Between HCW Biologics and Immix Biopharma

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

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

Diversification Opportunities for HCW Biologics and Immix Biopharma

-0.25

Correlation Coefficient

HCW Biologics  Immix Biopharma

Very good diversification

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

Pair Corralation between HCW Biologics and Immix Biopharma

Given the investment horizon of 90 days HCW Biologics is expected to generate 1.01 times more return on investment than Immix Biopharma. However, HCW Biologics is 1.01 times more volatile than Immix Biopharma. It trades about 0.06 of its potential returns per unit of risk. Immix Biopharma is currently generating about 0.04 per unit of risk. If you would invest  42.00  in HCW Biologics on October 5, 2024 and sell it today you would earn a total of  2.00  from holding HCW Biologics or generate 4.76% return on investment over 90 days.

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

HCW Biologics  vs.  Immix Biopharma

HCW Biologics

Risk-Adjusted Performance

6 of 100

Modest

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

Immix Biopharma

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Immix Biopharma are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Immix Biopharma showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HCW Biologics and Immix Biopharma

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

The idea behind HCW Biologics and Immix Biopharma 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.