Correlation Between ImmunoGen and Cardiff Oncology

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

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

Diversification Opportunities for ImmunoGen and Cardiff Oncology

0.48

Correlation Coefficient

ImmunoGen  Cardiff Oncology

Very weak diversification

The 3 months correlation between ImmunoGen and Cardiff is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding ImmunoGen and Cardiff Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardiff Oncology and ImmunoGen 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 ImmunoGen are associated (or correlated) with Cardiff Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardiff Oncology has no effect on the direction of ImmunoGen i.e., ImmunoGen and Cardiff Oncology go up and down completely randomly.

Pair Corralation between ImmunoGen and Cardiff Oncology

If you would invest  231.00  in Cardiff Oncology on September 8, 2024 and sell it today you would earn a total of  0.00  from holding Cardiff Oncology or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

ImmunoGen  vs.  Cardiff Oncology

ImmunoGen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ImmunoGen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, ImmunoGen is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Cardiff Oncology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cardiff Oncology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, Cardiff Oncology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with ImmunoGen and Cardiff Oncology

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

The idea behind ImmunoGen and Cardiff Oncology 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.