Correlation Between Zentalis Pharmaceuticals and I Mab

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

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

Diversification Opportunities for Zentalis Pharmaceuticals and I Mab

0.27

Correlation Coefficient

Zentalis Pharmaceuticals  I Mab

Modest diversification

The 3 months correlation between Zentalis and IMAB is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Zentalis Pharmaceuticals Llc and I Mab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Mab and Zentalis Pharmaceuticals 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 Zentalis Pharmaceuticals Llc are associated (or correlated) with I Mab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Mab has no effect on the direction of Zentalis Pharmaceuticals i.e., Zentalis Pharmaceuticals and I Mab go up and down completely randomly.

Pair Corralation between Zentalis Pharmaceuticals and I Mab

Given the investment horizon of 90 days Zentalis Pharmaceuticals Llc is expected to under-perform the I Mab. In addition to that, Zentalis Pharmaceuticals is 1.76 times more volatile than I Mab. It trades about -0.09 of its total potential returns per unit of risk. I Mab is currently generating about 0.0 per unit of volatility. If you would invest  88.00  in I Mab on December 27, 2024 and sell it today you would lose (4.00) from holding I Mab or give up 4.55% of portfolio value over 90 days.

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

Zentalis Pharmaceuticals Llc  vs.  I Mab

Zentalis Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zentalis Pharmaceuticals Llc 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 basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

I Mab

Risk-Adjusted Performance

Very Weak

Over the last 90 days I Mab has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, I Mab is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Zentalis Pharmaceuticals and I Mab

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

The idea behind Zentalis Pharmaceuticals Llc and I Mab 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 Global Correlations module to find global opportunities by holding instruments from different markets.