Correlation Between ImmuCell and Avax Techs

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

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

Diversification Opportunities for ImmuCell and Avax Techs

0.0

Correlation Coefficient

ImmuCell  Avax Techs

Pay attention - limited upside

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

Pair Corralation between ImmuCell and Avax Techs

Given the investment horizon of 90 days ImmuCell is expected to generate 196.69 times less return on investment than Avax Techs. But when comparing it to its historical volatility, ImmuCell is 38.24 times less risky than Avax Techs. It trades about 0.02 of its potential returns per unit of risk. Avax Techs is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Avax Techs on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Avax Techs or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

ImmuCell  vs.  Avax Techs

ImmuCell

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, ImmuCell is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Avax Techs

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Avax Techs are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Avax Techs unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ImmuCell and Avax Techs

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

The idea behind ImmuCell and Avax Techs 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.