Correlation Between IGM Biosciences and Monte Rosa
Can any of the company-specific risk be diversified away by investing in both IGM Biosciences and Monte Rosa 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 IGM Biosciences and Monte Rosa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGM Biosciences and Monte Rosa Therapeutics, you can compare the effects of market volatilities on IGM Biosciences and Monte Rosa 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 IGM Biosciences with a short position of Monte Rosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGM Biosciences and Monte Rosa.
Diversification Opportunities for IGM Biosciences and Monte Rosa
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IGM and Monte is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding IGM Biosciences and Monte Rosa Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monte Rosa Therapeutics and IGM Biosciences 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 IGM Biosciences are associated (or correlated) with Monte Rosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monte Rosa Therapeutics has no effect on the direction of IGM Biosciences i.e., IGM Biosciences and Monte Rosa go up and down completely randomly.
Pair Corralation between IGM Biosciences and Monte Rosa
Given the investment horizon of 90 days IGM Biosciences is expected to generate 1.33 times more return on investment than Monte Rosa. However, IGM Biosciences is 1.33 times more volatile than Monte Rosa Therapeutics. It trades about -0.09 of its potential returns per unit of risk. Monte Rosa Therapeutics is currently generating about -0.25 per unit of risk. If you would invest 151.00 in IGM Biosciences on December 2, 2024 and sell it today you would lose (15.00) from holding IGM Biosciences or give up 9.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
IGM Biosciences vs. Monte Rosa Therapeutics
Performance |
Timeline |
IGM Biosciences |
Monte Rosa Therapeutics |
IGM Biosciences and Monte Rosa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IGM Biosciences and Monte Rosa
The main advantage of trading using opposite IGM Biosciences and Monte Rosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGM Biosciences position performs unexpectedly, Monte Rosa 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 Monte Rosa will offset losses from the drop in Monte Rosa's long position.IGM Biosciences vs. Avidity Biosciences | IGM Biosciences vs. Cullinan Oncology LLC | IGM Biosciences vs. Mineralys Therapeutics, Common | IGM Biosciences vs. Monte Rosa Therapeutics |
Monte Rosa vs. Nkarta Inc | Monte Rosa vs. Lyell Immunopharma | Monte Rosa vs. Generation Bio Co | Monte Rosa vs. Sana Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
CEOs Directory Screen CEOs from public companies around the world |