Correlation Between Immunovant and I Mab

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

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

Diversification Opportunities for Immunovant and I Mab

0.25

Correlation Coefficient

Immunovant  I Mab

Modest diversification

The 3 months correlation between Immunovant and IMAB is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Immunovant and I Mab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Mab and Immunovant 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 Immunovant are associated (or correlated) with I Mab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Mab has no effect on the direction of Immunovant i.e., Immunovant and I Mab go up and down completely randomly.

Pair Corralation between Immunovant and I Mab

Given the investment horizon of 90 days Immunovant is expected to under-perform the I Mab. But the stock apears to be less risky and, when comparing its historical volatility, Immunovant is 1.83 times less risky than I Mab. The stock trades about -0.02 of its potential returns per unit of risk. The I Mab is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  105.00  in I Mab on August 31, 2024 and sell it today you would lose (10.00) from holding I Mab or give up 9.52% of portfolio value over 90 days.

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

Immunovant  vs.  I Mab

Immunovant

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immunovant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Immunovant is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

I Mab

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days I Mab has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, I Mab is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Immunovant and I Mab

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

The idea behind Immunovant and I Mab 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.