Correlation Between Immutep and Geron

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

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

Diversification Opportunities for Immutep and Geron

0.84

Correlation Coefficient

Immutep  Geron

Very poor diversification

The 3 months correlation between Immutep and Geron is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Immutep Ltd ADR and Geron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron and Immutep 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 Immutep Ltd ADR are associated (or correlated) with Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of Immutep i.e., Immutep and Geron go up and down completely randomly.

Pair Corralation between Immutep and Geron

Given the investment horizon of 90 days Immutep Ltd ADR is expected to generate 0.43 times more return on investment than Geron. However, Immutep Ltd ADR is 2.34 times less risky than Geron. It trades about -0.07 of its potential returns per unit of risk. Geron is currently generating about -0.19 per unit of risk. If you would invest  208.00  in Immutep Ltd ADR on December 29, 2024 and sell it today you would lose (22.00) from holding Immutep Ltd ADR or give up 10.58% of portfolio value over 90 days.

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

Immutep Ltd ADR  vs.  Geron

Immutep Ltd ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Immutep Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's primary indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Geron

Risk-Adjusted Performance

Very Weak

Over the last 90 days Geron 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 very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Immutep and Geron

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

The idea behind Immutep Ltd ADR and Geron 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.