Correlation Between Immunitybio and Surrozen

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

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

Diversification Opportunities for Immunitybio and Surrozen

-0.43

Correlation Coefficient

Immunitybio  Surrozen

Very good diversification

The 3 months correlation between Immunitybio and Surrozen is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Immunitybio and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen and Immunitybio 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 Immunitybio are associated (or correlated) with Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of Immunitybio i.e., Immunitybio and Surrozen go up and down completely randomly.

Pair Corralation between Immunitybio and Surrozen

Given the investment horizon of 90 days Immunitybio is expected to under-perform the Surrozen. In addition to that, Immunitybio is 1.02 times more volatile than Surrozen. It trades about -0.01 of its total potential returns per unit of risk. Surrozen is currently generating about 0.13 per unit of volatility. If you would invest  1,117  in Surrozen on October 8, 2024 and sell it today you would earn a total of  656.50  from holding Surrozen or generate 58.77% return on investment over 90 days.

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

Immunitybio  vs.  Surrozen

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.

Surrozen

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Surrozen are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Surrozen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Immunitybio and Surrozen

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

The idea behind Immunitybio and Surrozen 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.