Correlation Between LIFE Old and Immuneering Corp

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

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

Diversification Opportunities for LIFE Old and Immuneering Corp

0.0

Correlation Coefficient

LIFE Old  Immuneering Corp

Pay attention - limited upside

The 3 months correlation between LIFE and Immuneering is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LIFE Old and Immuneering Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuneering Corp and LIFE Old 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 LIFE Old are associated (or correlated) with Immuneering Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuneering Corp has no effect on the direction of LIFE Old i.e., LIFE Old and Immuneering Corp go up and down completely randomly.

Pair Corralation between LIFE Old and Immuneering Corp

If you would invest (100.00) in LIFE Old on December 30, 2024 and sell it today you would earn a total of  100.00  from holding LIFE Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

LIFE Old  vs.  Immuneering Corp

LIFE Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days LIFE Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, LIFE Old is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Immuneering Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Immuneering Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly 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.

Pair Trading with LIFE Old and Immuneering Corp

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

The idea behind LIFE Old and Immuneering Corp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.