Correlation Between Hookipa Pharma and Immunitybio

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

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

Diversification Opportunities for Hookipa Pharma and Immunitybio

0.36

Correlation Coefficient

Hookipa Pharma  Immunitybio

Weak diversification

The 3 months correlation between Hookipa and Immunitybio is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hookipa Pharma and Immunitybio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunitybio and Hookipa Pharma 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 Hookipa Pharma 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 Hookipa Pharma i.e., Hookipa Pharma and Immunitybio go up and down completely randomly.

Pair Corralation between Hookipa Pharma and Immunitybio

Given the investment horizon of 90 days Hookipa Pharma is expected to under-perform the Immunitybio. But the stock apears to be less risky and, when comparing its historical volatility, Hookipa Pharma is 1.49 times less risky than Immunitybio. The stock trades about -0.2 of its potential returns per unit of risk. The Immunitybio is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  662.00  in Immunitybio on October 10, 2024 and sell it today you would lose (389.00) from holding Immunitybio or give up 58.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Hookipa Pharma  vs.  Immunitybio

Hookipa Pharma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hookipa Pharma has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Immunitybio

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Hookipa Pharma and Immunitybio

The main advantage of trading using opposite Hookipa Pharma and Immunitybio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hookipa Pharma 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 Hookipa Pharma 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.