Correlation Between Immunic and TG Therapeutics

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

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

Diversification Opportunities for Immunic and TG Therapeutics

-0.4

Correlation Coefficient

Immunic  TG Therapeutics

Very good diversification

The 3 months correlation between Immunic and TGTX is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Immunic and TG Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TG 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 TG Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TG Therapeutics has no effect on the direction of Immunic i.e., Immunic and TG Therapeutics go up and down completely randomly.

Pair Corralation between Immunic and TG Therapeutics

Given the investment horizon of 90 days Immunic is expected to under-perform the TG Therapeutics. In addition to that, Immunic is 1.01 times more volatile than TG Therapeutics. It trades about -0.11 of its total potential returns per unit of risk. TG Therapeutics is currently generating about -0.05 per unit of volatility. If you would invest  3,095  in TG Therapeutics on October 20, 2024 and sell it today you would lose (140.00) from holding TG Therapeutics or give up 4.52% 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.  TG 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.

TG Therapeutics

Risk-Adjusted Performance

7 of 100

OK

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

Pair Trading with Immunic and TG Therapeutics

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

The idea behind Immunic and TG 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.