Correlation Between Immunome and PolyPid

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

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

Diversification Opportunities for Immunome and PolyPid

0.14

Correlation Coefficient

Immunome  PolyPid

Average diversification

The 3 months correlation between Immunome and PolyPid is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Immunome and PolyPid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PolyPid 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 PolyPid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PolyPid has no effect on the direction of Immunome i.e., Immunome and PolyPid go up and down completely randomly.

Pair Corralation between Immunome and PolyPid

Given the investment horizon of 90 days Immunome is expected to generate 1.32 times more return on investment than PolyPid. However, Immunome is 1.32 times more volatile than PolyPid. It trades about 0.01 of its potential returns per unit of risk. PolyPid is currently generating about 0.01 per unit of risk. If you would invest  1,404  in Immunome on August 31, 2024 and sell it today you would lose (57.00) from holding Immunome or give up 4.06% of portfolio value over 90 days.

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

Immunome  vs.  PolyPid

Immunome

Risk-Adjusted Performance

0 of 100

Very Weak

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

PolyPid

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PolyPid has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, PolyPid is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Immunome and PolyPid

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

The idea behind Immunome and PolyPid 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.