Correlation Between Immix Biopharma and LMF Acquisition

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

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

Diversification Opportunities for Immix Biopharma and LMF Acquisition

0.35

Correlation Coefficient

Immix Biopharma  LMF Acquisition

Weak diversification

The 3 months correlation between Immix and LMF is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Immix Biopharma and LMF Acquisition Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LMF Acquisition Oppo and Immix Biopharma 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 Immix Biopharma are associated (or correlated) with LMF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LMF Acquisition Oppo has no effect on the direction of Immix Biopharma i.e., Immix Biopharma and LMF Acquisition go up and down completely randomly.

Pair Corralation between Immix Biopharma and LMF Acquisition

Given the investment horizon of 90 days Immix Biopharma is expected to generate 1.13 times more return on investment than LMF Acquisition. However, Immix Biopharma is 1.13 times more volatile than LMF Acquisition Opportunities. It trades about 0.02 of its potential returns per unit of risk. LMF Acquisition Opportunities is currently generating about -0.16 per unit of risk. If you would invest  204.00  in Immix Biopharma on August 31, 2024 and sell it today you would lose (7.00) from holding Immix Biopharma or give up 3.43% of portfolio value over 90 days.

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

Immix Biopharma  vs.  LMF Acquisition Opportunities

Immix Biopharma

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Immix Biopharma are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Immix Biopharma may actually be approaching a critical reversion point that can send shares even higher in December 2024.

LMF Acquisition Oppo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LMF Acquisition Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Immix Biopharma and LMF Acquisition

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

The idea behind Immix Biopharma and LMF Acquisition Opportunities 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.