Correlation Between Anixa Biosciences and Immunome

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

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

Diversification Opportunities for Anixa Biosciences and Immunome

0.26

Correlation Coefficient

Anixa Biosciences  Immunome

Modest diversification

The 3 months correlation between Anixa and Immunome is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Anixa Biosciences and Immunome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunome and Anixa Biosciences 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 Anixa Biosciences 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 Anixa Biosciences i.e., Anixa Biosciences and Immunome go up and down completely randomly.

Pair Corralation between Anixa Biosciences and Immunome

Given the investment horizon of 90 days Anixa Biosciences is expected to generate 2.71 times less return on investment than Immunome. But when comparing it to its historical volatility, Anixa Biosciences is 1.11 times less risky than Immunome. It trades about 0.01 of its potential returns per unit of risk. Immunome is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,404  in Immunome on September 3, 2024 and sell it today you would earn a total of  4.00  from holding Immunome or generate 0.28% return on investment over 90 days.

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

Anixa Biosciences  vs.  Immunome

Anixa Biosciences

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Anixa Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Anixa Biosciences is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Immunome

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Immunome are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Immunome may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Anixa Biosciences and Immunome

The main advantage of trading using opposite Anixa Biosciences and Immunome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anixa Biosciences 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 Anixa Biosciences 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.

Check out your portfolio center.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.