Correlation Between Iovance Biotherapeutics and Exicure

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

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

Diversification Opportunities for Iovance Biotherapeutics and Exicure

0.57

Correlation Coefficient

Iovance Biotherapeutics  Exicure

Very weak diversification

The 3 months correlation between Iovance and Exicure is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Iovance Biotherapeutics and Exicure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exicure 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 Exicure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exicure has no effect on the direction of Iovance Biotherapeutics i.e., Iovance Biotherapeutics and Exicure go up and down completely randomly.

Pair Corralation between Iovance Biotherapeutics and Exicure

Given the investment horizon of 90 days Iovance Biotherapeutics is expected to under-perform the Exicure. But the stock apears to be less risky and, when comparing its historical volatility, Iovance Biotherapeutics is 2.77 times less risky than Exicure. The stock trades about -0.26 of its potential returns per unit of risk. The Exicure is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,867  in Exicure on December 20, 2024 and sell it today you would lose (577.00) from holding Exicure or give up 30.91% of portfolio value over 90 days.

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

Iovance Biotherapeutics  vs.  Exicure

Iovance Biotherapeutics

Risk-Adjusted Performance

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 April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Exicure

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exicure has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Exicure is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Iovance Biotherapeutics and Exicure

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

The idea behind Iovance Biotherapeutics and Exicure 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.