Correlation Between Immunic and C4 Therapeutics

Can any of the company-specific risk be diversified away by investing in both Immunic and C4 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 Immunic and C4 Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Immunic and C4 Therapeutics, you can compare the effects of market volatilities on Immunic and C4 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 Immunic with a short position of C4 Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunic and C4 Therapeutics.

Diversification Opportunities for Immunic and C4 Therapeutics

0.68

Correlation Coefficient

Immunic  C4 Therapeutics

Poor diversification

The 3 months correlation between Immunic and CCCC is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Immunic and C4 Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C4 Therapeutics and Immunic 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 Immunic are associated (or correlated) with C4 Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C4 Therapeutics has no effect on the direction of Immunic i.e., Immunic and C4 Therapeutics go up and down completely randomly.

Pair Corralation between Immunic and C4 Therapeutics

Given the investment horizon of 90 days Immunic is expected to under-perform the C4 Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Immunic is 1.39 times less risky than C4 Therapeutics. The stock trades about -0.25 of its potential returns per unit of risk. The C4 Therapeutics is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  419.00  in C4 Therapeutics on October 9, 2024 and sell it today you would lose (10.00) from holding C4 Therapeutics or give up 2.39% of portfolio value over 90 days.

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

Immunic  vs.  C4 Therapeutics

Immunic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immunic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

C4 Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days C4 Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Immunic and C4 Therapeutics

The main advantage of trading using opposite Immunic and C4 Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunic position performs unexpectedly, C4 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 C4 Therapeutics will offset losses from the drop in C4 Therapeutics' long position.

The idea behind Immunic and C4 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.