Correlation Between AC Immune and Surrozen

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

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

Diversification Opportunities for AC Immune and Surrozen

-0.21

Correlation Coefficient

AC Immune  Surrozen

Very good diversification

The 3 months correlation between ACIU and Surrozen is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AC Immune and Surrozen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surrozen and AC Immune 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 AC Immune are associated (or correlated) with Surrozen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surrozen has no effect on the direction of AC Immune i.e., AC Immune and Surrozen go up and down completely randomly.

Pair Corralation between AC Immune and Surrozen

Given the investment horizon of 90 days AC Immune is expected to under-perform the Surrozen. But the stock apears to be less risky and, when comparing its historical volatility, AC Immune is 2.15 times less risky than Surrozen. The stock trades about -0.13 of its potential returns per unit of risk. The Surrozen is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,198  in Surrozen on September 30, 2024 and sell it today you would earn a total of  192.00  from holding Surrozen or generate 16.03% return on investment over 90 days.

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

AC Immune  vs.  Surrozen

AC Immune

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AC Immune 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 forward indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Surrozen

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Surrozen are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Surrozen displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AC Immune and Surrozen

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

The idea behind AC Immune and Surrozen 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 Anywhere module to track or share privately all of your investments from the convenience of any device.