Correlation Between Immunome and Gain Therapeutics

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

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

Diversification Opportunities for Immunome and Gain Therapeutics

-0.49

Correlation Coefficient

Immunome  Gain Therapeutics

Very good diversification

The 3 months correlation between Immunome and Gain is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Immunome and Gain Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gain Therapeutics and Immunome 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 Immunome are associated (or correlated) with Gain Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gain Therapeutics has no effect on the direction of Immunome i.e., Immunome and Gain Therapeutics go up and down completely randomly.

Pair Corralation between Immunome and Gain Therapeutics

Given the investment horizon of 90 days Immunome is expected to generate 0.6 times more return on investment than Gain Therapeutics. However, Immunome is 1.65 times less risky than Gain Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Gain Therapeutics is currently generating about 0.0 per unit of risk. If you would invest  1,555  in Immunome on September 3, 2024 and sell it today you would lose (147.00) from holding Immunome or give up 9.45% of portfolio value over 90 days.

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

Immunome  vs.  Gain Therapeutics

Immunome

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Immunome are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Immunome may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Gain Therapeutics

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gain Therapeutics are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Gain Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Immunome and Gain Therapeutics

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

The idea behind Immunome and Gain 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.