Correlation Between Viatris and Immunome

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

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

Diversification Opportunities for Viatris and Immunome

-0.5

Correlation Coefficient

Viatris  Immunome

Very good diversification

The 3 months correlation between Viatris and Immunome is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Viatris and Immunome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunome and Viatris 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 Viatris are associated (or correlated) with Immunome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunome has no effect on the direction of Viatris i.e., Viatris and Immunome go up and down completely randomly.

Pair Corralation between Viatris and Immunome

Given the investment horizon of 90 days Viatris is expected to generate 0.48 times more return on investment than Immunome. However, Viatris is 2.08 times less risky than Immunome. It trades about 0.08 of its potential returns per unit of risk. Immunome is currently generating about 0.01 per unit of risk. If you would invest  1,189  in Viatris on August 31, 2024 and sell it today you would earn a total of  133.00  from holding Viatris or generate 11.19% return on investment over 90 days.

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

Viatris  vs.  Immunome

Viatris

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Viatris are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Viatris may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Immunome

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Viatris and Immunome

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

The idea behind Viatris and Immunome 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.