Correlation Between MAIA Biotechnology and ImmuCell

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

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

Diversification Opportunities for MAIA Biotechnology and ImmuCell

0.49

Correlation Coefficient

MAIA Biotechnology  ImmuCell

Very weak diversification

The 3 months correlation between MAIA and ImmuCell is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding MAIA Biotechnology and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and MAIA Biotechnology 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 MAIA Biotechnology are associated (or correlated) with ImmuCell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuCell has no effect on the direction of MAIA Biotechnology i.e., MAIA Biotechnology and ImmuCell go up and down completely randomly.

Pair Corralation between MAIA Biotechnology and ImmuCell

Given the investment horizon of 90 days MAIA Biotechnology is expected to under-perform the ImmuCell. In addition to that, MAIA Biotechnology is 1.39 times more volatile than ImmuCell. It trades about -0.05 of its total potential returns per unit of risk. ImmuCell is currently generating about 0.04 per unit of volatility. If you would invest  482.00  in ImmuCell on December 29, 2024 and sell it today you would earn a total of  19.00  from holding ImmuCell or generate 3.94% return on investment over 90 days.

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

MAIA Biotechnology  vs.  ImmuCell

MAIA Biotechnology

Risk-Adjusted Performance

Very Weak

Over the last 90 days MAIA Biotechnology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward 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.

ImmuCell

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with MAIA Biotechnology and ImmuCell

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

The idea behind MAIA Biotechnology and ImmuCell 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.