Correlation Between 60 Degrees and Immatics

Can any of the company-specific risk be diversified away by investing in both 60 Degrees and Immatics 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 60 Degrees and Immatics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 60 Degrees Pharmaceuticals, and Immatics NV, you can compare the effects of market volatilities on 60 Degrees and Immatics 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 60 Degrees with a short position of Immatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 60 Degrees and Immatics.

Diversification Opportunities for 60 Degrees and Immatics

0.78

Correlation Coefficient

60 Degrees  Immatics

Poor diversification

The 3 months correlation between SXTPW and Immatics is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding 60 Degrees Pharmaceuticals, and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV and 60 Degrees 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 60 Degrees Pharmaceuticals, are associated (or correlated) with Immatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics NV has no effect on the direction of 60 Degrees i.e., 60 Degrees and Immatics go up and down completely randomly.

Pair Corralation between 60 Degrees and Immatics

Assuming the 90 days horizon 60 Degrees Pharmaceuticals, is expected to generate 23.73 times more return on investment than Immatics. However, 60 Degrees is 23.73 times more volatile than Immatics NV. It trades about 0.19 of its potential returns per unit of risk. Immatics NV is currently generating about -0.24 per unit of risk. If you would invest  3.70  in 60 Degrees Pharmaceuticals, on September 19, 2024 and sell it today you would earn a total of  0.30  from holding 60 Degrees Pharmaceuticals, or generate 8.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	63.64%
Values	Daily Returns

60 Degrees Pharmaceuticals,  vs.  Immatics NV

60 Degrees Pharmaceu

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 60 Degrees Pharmaceuticals, are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, 60 Degrees showed solid returns over the last few months and may actually be approaching a breakup point.

Immatics NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immatics NV 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 basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with 60 Degrees and Immatics

The main advantage of trading using opposite 60 Degrees and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 60 Degrees position performs unexpectedly, Immatics 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 Immatics will offset losses from the drop in Immatics' long position.

The idea behind 60 Degrees Pharmaceuticals, and Immatics NV 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.