Correlation Between Amylyx Pharmaceuticals and Immix Biopharma

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

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

Diversification Opportunities for Amylyx Pharmaceuticals and Immix Biopharma

-0.07

Correlation Coefficient

Amylyx Pharmaceuticals  Immix Biopharma

Good diversification

The 3 months correlation between Amylyx and Immix is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Amylyx Pharmaceuticals and Immix Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immix Biopharma and Amylyx 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 Amylyx Pharmaceuticals are associated (or correlated) with Immix Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immix Biopharma has no effect on the direction of Amylyx Pharmaceuticals i.e., Amylyx Pharmaceuticals and Immix Biopharma go up and down completely randomly.

Pair Corralation between Amylyx Pharmaceuticals and Immix Biopharma

Given the investment horizon of 90 days Amylyx Pharmaceuticals is expected to under-perform the Immix Biopharma. But the etf apears to be less risky and, when comparing its historical volatility, Amylyx Pharmaceuticals is 1.15 times less risky than Immix Biopharma. The etf trades about -0.03 of its potential returns per unit of risk. The Immix Biopharma is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  158.00  in Immix Biopharma on September 5, 2024 and sell it today you would earn a total of  73.00  from holding Immix Biopharma or generate 46.2% return on investment over 90 days.

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

Amylyx Pharmaceuticals  vs.  Immix Biopharma

Amylyx Pharmaceuticals

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amylyx Pharmaceuticals are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating essential indicators, Amylyx Pharmaceuticals showed solid returns over the last few months and may actually be approaching a breakup point.

Immix Biopharma

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Immix Biopharma are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting primary indicators, Immix Biopharma showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amylyx Pharmaceuticals and Immix Biopharma

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

The idea behind Amylyx Pharmaceuticals and Immix Biopharma 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.