Correlation Between Immunic and Monte Rosa

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

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

Diversification Opportunities for Immunic and Monte Rosa

-0.54

Correlation Coefficient

Immunic  Monte Rosa

Excellent diversification

The 3 months correlation between Immunic and Monte is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Immunic and Monte Rosa Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monte Rosa 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 Monte Rosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monte Rosa Therapeutics has no effect on the direction of Immunic i.e., Immunic and Monte Rosa go up and down completely randomly.

Pair Corralation between Immunic and Monte Rosa

Given the investment horizon of 90 days Immunic is expected to generate 0.82 times more return on investment than Monte Rosa. However, Immunic is 1.22 times less risky than Monte Rosa. It trades about -0.25 of its potential returns per unit of risk. Monte Rosa Therapeutics is currently generating about -0.43 per unit of risk. If you would invest  132.00  in Immunic on October 9, 2024 and sell it today you would lose (23.00) from holding Immunic or give up 17.42% of portfolio value over 90 days.

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

Immunic  vs.  Monte Rosa 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.

Monte Rosa Therapeutics

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Monte Rosa Therapeutics are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Monte Rosa exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Immunic and Monte Rosa

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

The idea behind Immunic and Monte Rosa 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.