Correlation Between Anavex Life and ImmunoGen

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

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

Diversification Opportunities for Anavex Life and ImmunoGen

0.55

Correlation Coefficient

Anavex Life  ImmunoGen

Very weak diversification

The 3 months correlation between Anavex and ImmunoGen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Anavex Life Sciences and ImmunoGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoGen and Anavex Life 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 Anavex Life Sciences are associated (or correlated) with ImmunoGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmunoGen has no effect on the direction of Anavex Life i.e., Anavex Life and ImmunoGen go up and down completely randomly.

Pair Corralation between Anavex Life and ImmunoGen

If you would invest  546.00  in Anavex Life Sciences on September 2, 2024 and sell it today you would earn a total of  400.00  from holding Anavex Life Sciences or generate 73.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Anavex Life Sciences  vs.  ImmunoGen

Anavex Life Sciences

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Anavex Life Sciences are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Anavex Life disclosed solid returns over the last few months and may actually be approaching a breakup point.

ImmunoGen

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ImmunoGen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, ImmunoGen is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Anavex Life and ImmunoGen

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

The idea behind Anavex Life Sciences and ImmunoGen 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.