Correlation Between Immuneering Corp and Equillium

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

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

Diversification Opportunities for Immuneering Corp and Equillium

0.04

Correlation Coefficient

Immuneering Corp  Equillium

Significant diversification

The 3 months correlation between Immuneering and Equillium is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Immuneering Corp and Equillium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equillium and Immuneering Corp 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 Immuneering Corp are associated (or correlated) with Equillium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equillium has no effect on the direction of Immuneering Corp i.e., Immuneering Corp and Equillium go up and down completely randomly.

Pair Corralation between Immuneering Corp and Equillium

Given the investment horizon of 90 days Immuneering Corp is expected to generate 1.2 times more return on investment than Equillium. However, Immuneering Corp is 1.2 times more volatile than Equillium. It trades about 0.11 of its potential returns per unit of risk. Equillium is currently generating about -0.16 per unit of risk. If you would invest  183.00  in Immuneering Corp on September 13, 2024 and sell it today you would earn a total of  21.00  from holding Immuneering Corp or generate 11.48% return on investment over 90 days.

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

Immuneering Corp  vs.  Equillium

Immuneering Corp

Risk-Adjusted Performance

4 of 100

Insignificant

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

Equillium

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Equillium has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Equillium is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Immuneering Corp and Equillium

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

The idea behind Immuneering Corp and Equillium 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.