Correlation Between Iovance Biotherapeutics and Actinium Pharmaceuticals

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

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

Diversification Opportunities for Iovance Biotherapeutics and Actinium Pharmaceuticals

0.87

Correlation Coefficient

Iovance Biotherapeutics  Actinium Pharmaceuticals

Very poor diversification

The 3 months correlation between Iovance and Actinium is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Iovance Biotherapeutics and Actinium Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinium Pharmaceuticals and Iovance Biotherapeutics 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 Iovance Biotherapeutics are associated (or correlated) with Actinium Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinium Pharmaceuticals has no effect on the direction of Iovance Biotherapeutics i.e., Iovance Biotherapeutics and Actinium Pharmaceuticals go up and down completely randomly.

Pair Corralation between Iovance Biotherapeutics and Actinium Pharmaceuticals

Given the investment horizon of 90 days Iovance Biotherapeutics is expected to generate 0.95 times more return on investment than Actinium Pharmaceuticals. However, Iovance Biotherapeutics is 1.05 times less risky than Actinium Pharmaceuticals. It trades about 0.03 of its potential returns per unit of risk. Actinium Pharmaceuticals is currently generating about -0.04 per unit of risk. If you would invest  643.00  in Iovance Biotherapeutics on October 7, 2024 and sell it today you would earn a total of  122.00  from holding Iovance Biotherapeutics or generate 18.97% return on investment over 90 days.

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

Iovance Biotherapeutics  vs.  Actinium Pharmaceuticals

Iovance Biotherapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Iovance Biotherapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat 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.

Actinium Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Actinium Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Actinium Pharmaceuticals is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Iovance Biotherapeutics and Actinium Pharmaceuticals

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

The idea behind Iovance Biotherapeutics and Actinium Pharmaceuticals 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.