Correlation Between ImmunoGen and Immunitybio

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

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

Diversification Opportunities for ImmunoGen and Immunitybio

0.0

Correlation Coefficient

ImmunoGen  Immunitybio

Pay attention - limited upside

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

Pair Corralation between ImmunoGen and Immunitybio

If you would invest (100.00) in ImmunoGen on November 20, 2024 and sell it today you would earn a total of  100.00  from holding ImmunoGen or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ImmunoGen  vs.  Immunitybio

ImmunoGen

Risk-Adjusted Performance

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.

Immunitybio

Risk-Adjusted Performance

Very Weak

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

Pair Trading with ImmunoGen and Immunitybio

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

The idea behind ImmunoGen and Immunitybio 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.