Correlation Between Immatics Biotechnologies and Lexaria Bioscience

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

By analyzing existing cross correlation between immatics biotechnologies GmbH and Lexaria Bioscience Corp, you can compare the effects of market volatilities on Immatics Biotechnologies and Lexaria Bioscience 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 Immatics Biotechnologies with a short position of Lexaria Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immatics Biotechnologies and Lexaria Bioscience.

Diversification Opportunities for Immatics Biotechnologies and Lexaria Bioscience

0.64

Correlation Coefficient

Immatics Biotechnologies  Lexaria Bioscience

Poor diversification

The 3 months correlation between Immatics and Lexaria is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding immatics biotechnologies GmbH and Lexaria Bioscience Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lexaria Bioscience Corp and Immatics Biotechnologies 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 immatics biotechnologies GmbH are associated (or correlated) with Lexaria Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lexaria Bioscience Corp has no effect on the direction of Immatics Biotechnologies i.e., Immatics Biotechnologies and Lexaria Bioscience go up and down completely randomly.

Pair Corralation between Immatics Biotechnologies and Lexaria Bioscience

Assuming the 90 days horizon immatics biotechnologies GmbH is expected to under-perform the Lexaria Bioscience. In addition to that, Immatics Biotechnologies is 5.5 times more volatile than Lexaria Bioscience Corp. It trades about -0.14 of its total potential returns per unit of risk. Lexaria Bioscience Corp is currently generating about -0.21 per unit of volatility. If you would invest  259.00  in Lexaria Bioscience Corp on December 4, 2024 and sell it today you would lose (112.00) from holding Lexaria Bioscience Corp or give up 43.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	84.75%
Values	Daily Returns

immatics biotechnologies GmbH  vs.  Lexaria Bioscience Corp

Immatics Biotechnologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days immatics biotechnologies GmbH has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Lexaria Bioscience Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lexaria Bioscience Corp 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 April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Immatics Biotechnologies and Lexaria Bioscience

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

The idea behind immatics biotechnologies GmbH and Lexaria Bioscience Corp 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..