Correlation Between Biomx and Immix Biopharma

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

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

Diversification Opportunities for Biomx and Immix Biopharma

0.29

Correlation Coefficient

Biomx  Immix Biopharma

Modest diversification

The 3 months correlation between Biomx and Immix is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Biomx Inc and Immix Biopharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immix Biopharma and Biomx 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 Biomx Inc are associated (or correlated) with Immix Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immix Biopharma has no effect on the direction of Biomx i.e., Biomx and Immix Biopharma go up and down completely randomly.

Pair Corralation between Biomx and Immix Biopharma

Given the investment horizon of 90 days Biomx Inc is expected to under-perform the Immix Biopharma. But the stock apears to be less risky and, when comparing its historical volatility, Biomx Inc is 1.16 times less risky than Immix Biopharma. The stock trades about -0.11 of its potential returns per unit of risk. The Immix Biopharma is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  204.00  in Immix Biopharma on September 1, 2024 and sell it today you would earn a total of  7.00  from holding Immix Biopharma or generate 3.43% return on investment over 90 days.

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

Biomx Inc  vs.  Immix Biopharma

Biomx Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Biomx Inc 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Immix Biopharma

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Immix Biopharma are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Immix Biopharma showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Biomx and Immix Biopharma

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

The idea behind Biomx Inc and Immix Biopharma 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.