Correlation Between AgeX Therapeutics and ImmuCell

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

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

Diversification Opportunities for AgeX Therapeutics and ImmuCell

0.36

Correlation Coefficient

AgeX Therapeutics  ImmuCell

Weak diversification

The 3 months correlation between AgeX and ImmuCell is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding AgeX Therapeutics and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and AgeX Therapeutics 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 AgeX Therapeutics 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 AgeX Therapeutics i.e., AgeX Therapeutics and ImmuCell go up and down completely randomly.

Pair Corralation between AgeX Therapeutics and ImmuCell

If you would invest  461.00  in ImmuCell on September 14, 2024 and sell it today you would earn a total of  31.00  from holding ImmuCell or generate 6.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.37%
Values	Daily Returns

AgeX Therapeutics  vs.  ImmuCell

AgeX Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

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

ImmuCell

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AgeX Therapeutics and ImmuCell

The main advantage of trading using opposite AgeX Therapeutics and ImmuCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgeX Therapeutics 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 AgeX Therapeutics 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .