Correlation Between Immunocore Holdings and Revance Therapeutics,

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

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

Diversification Opportunities for Immunocore Holdings and Revance Therapeutics,

-0.18

Correlation Coefficient

Immunocore Holdings  Revance Therapeutics,

Good diversification

The 3 months correlation between Immunocore and Revance is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Immunocore Holdings and Revance Therapeutics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revance Therapeutics, and Immunocore Holdings 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 Immunocore Holdings are associated (or correlated) with Revance Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revance Therapeutics, has no effect on the direction of Immunocore Holdings i.e., Immunocore Holdings and Revance Therapeutics, go up and down completely randomly.

Pair Corralation between Immunocore Holdings and Revance Therapeutics,

Given the investment horizon of 90 days Immunocore Holdings is expected to generate 11.14 times less return on investment than Revance Therapeutics,. But when comparing it to its historical volatility, Immunocore Holdings is 1.34 times less risky than Revance Therapeutics,. It trades about 0.02 of its potential returns per unit of risk. Revance Therapeutics, is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  306.00  in Revance Therapeutics, on December 30, 2024 and sell it today you would earn a total of  59.00  from holding Revance Therapeutics, or generate 19.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	43.55%
Values	Daily Returns

Immunocore Holdings  vs.  Revance Therapeutics,

Immunocore Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Immunocore Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Immunocore Holdings is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Revance Therapeutics,

Risk-Adjusted Performance

Good

Over the last 90 days Revance Therapeutics, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather unsteady basic indicators, Revance Therapeutics, exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Immunocore Holdings and Revance Therapeutics,

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

The idea behind Immunocore Holdings and Revance 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.