Correlation Between I Mab and Nurix Therapeutics

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

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

Diversification Opportunities for I Mab and Nurix Therapeutics

0.51

Correlation Coefficient

I Mab  Nurix Therapeutics

Very weak diversification

The 3 months correlation between IMAB and Nurix is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding I Mab and Nurix Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nurix Therapeutics and I Mab 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 I Mab are associated (or correlated) with Nurix Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nurix Therapeutics has no effect on the direction of I Mab i.e., I Mab and Nurix Therapeutics go up and down completely randomly.

Pair Corralation between I Mab and Nurix Therapeutics

Given the investment horizon of 90 days I Mab is expected to under-perform the Nurix Therapeutics. In addition to that, I Mab is 1.11 times more volatile than Nurix Therapeutics. It trades about -0.13 of its total potential returns per unit of risk. Nurix Therapeutics is currently generating about -0.03 per unit of volatility. If you would invest  2,006  in Nurix Therapeutics on October 6, 2024 and sell it today you would lose (55.00) from holding Nurix Therapeutics or give up 2.74% of portfolio value over 90 days.

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

I Mab  vs.  Nurix Therapeutics

I Mab

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days I Mab has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Nurix Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with I Mab and Nurix Therapeutics

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

The idea behind I Mab and Nurix Therapeutics 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.