Correlation Between Avax Techs and ImmuCell

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

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

Diversification Opportunities for Avax Techs and ImmuCell

0.12

Correlation Coefficient

Avax Techs  ImmuCell

Average diversification

The 3 months correlation between Avax and ImmuCell is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Avax Techs and ImmuCell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuCell and Avax Techs 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 Avax Techs 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 Avax Techs i.e., Avax Techs and ImmuCell go up and down completely randomly.

Pair Corralation between Avax Techs and ImmuCell

Given the investment horizon of 90 days Avax Techs is expected to under-perform the ImmuCell. In addition to that, Avax Techs is 5.5 times more volatile than ImmuCell. It trades about -0.12 of its total potential returns per unit of risk. ImmuCell is currently generating about 0.07 per unit of volatility. If you would invest  377.00  in ImmuCell on September 3, 2024 and sell it today you would earn a total of  35.00  from holding ImmuCell or generate 9.28% return on investment over 90 days.

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

Avax Techs  vs.  ImmuCell

Avax Techs

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avax Techs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic 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.

ImmuCell

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuCell are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, ImmuCell may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Avax Techs and ImmuCell

The main advantage of trading using opposite Avax Techs and ImmuCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avax Techs 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 Avax Techs 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..