Correlation Between Briacell Therapeutics and Immatics

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

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

Diversification Opportunities for Briacell Therapeutics and Immatics

0.45

Correlation Coefficient

Briacell Therapeutics  Immatics

Very weak diversification

The 3 months correlation between Briacell and Immatics is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Briacell Therapeutics Corp and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV and Briacell Therapeutics 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 Briacell Therapeutics Corp 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 Briacell Therapeutics i.e., Briacell Therapeutics and Immatics go up and down completely randomly.

Pair Corralation between Briacell Therapeutics and Immatics

Given the investment horizon of 90 days Briacell Therapeutics Corp is expected to under-perform the Immatics. In addition to that, Briacell Therapeutics is 2.15 times more volatile than Immatics NV. It trades about -0.11 of its total potential returns per unit of risk. Immatics NV is currently generating about -0.22 per unit of volatility. If you would invest  1,137  in Immatics NV on January 26, 2024 and sell it today you would lose (122.00) from holding Immatics NV or give up 10.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Briacell Therapeutics Corp  vs.  Immatics NV

Briacell Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Briacell Therapeutics Corp 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 May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

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 May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Briacell Therapeutics and Immatics

The main advantage of trading using opposite Briacell Therapeutics and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Briacell Therapeutics 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 Briacell Therapeutics Corp 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..