Correlation Between ImmunoCellular Therapeutics and AN2 Therapeutics

Can any of the company-specific risk be diversified away by investing in both ImmunoCellular Therapeutics and AN2 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 ImmunoCellular Therapeutics and AN2 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ImmunoCellular Therapeutics and AN2 Therapeutics, you can compare the effects of market volatilities on ImmunoCellular Therapeutics and AN2 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 ImmunoCellular Therapeutics with a short position of AN2 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmunoCellular Therapeutics and AN2 Therapeutics.

Diversification Opportunities for ImmunoCellular Therapeutics and AN2 Therapeutics

-0.22

Correlation Coefficient

ImmunoCellular Therapeutics  AN2 Therapeutics

Very good diversification

The 3 months correlation between ImmunoCellular and AN2 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding ImmunoCellular Therapeutics and AN2 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AN2 Therapeutics and ImmunoCellular Therapeutics 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 ImmunoCellular Therapeutics are associated (or correlated) with AN2 Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AN2 Therapeutics has no effect on the direction of ImmunoCellular Therapeutics i.e., ImmunoCellular Therapeutics and AN2 Therapeutics go up and down completely randomly.

Pair Corralation between ImmunoCellular Therapeutics and AN2 Therapeutics

If you would invest  105.00  in AN2 Therapeutics on September 14, 2024 and sell it today you would earn a total of  43.00  from holding AN2 Therapeutics or generate 40.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

ImmunoCellular Therapeutics  vs.  AN2 Therapeutics

ImmunoCellular Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

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

AN2 Therapeutics

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AN2 Therapeutics are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, AN2 Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ImmunoCellular Therapeutics and AN2 Therapeutics

The main advantage of trading using opposite ImmunoCellular Therapeutics and AN2 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmunoCellular Therapeutics position performs unexpectedly, AN2 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 AN2 Therapeutics will offset losses from the drop in AN2 Therapeutics' long position.

The idea behind ImmunoCellular Therapeutics and AN2 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.