Correlation Between Immunocore Holdings and ANI Pharmaceuticals

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

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

Diversification Opportunities for Immunocore Holdings and ANI Pharmaceuticals

0.76

Correlation Coefficient

Immunocore Holdings  ANI Pharmaceuticals

Poor diversification

The 3 months correlation between Immunocore and ANI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Immunocore Holdings and ANI Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANI Pharmaceuticals and Immunocore Holdings 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 Immunocore Holdings are associated (or correlated) with ANI Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANI Pharmaceuticals has no effect on the direction of Immunocore Holdings i.e., Immunocore Holdings and ANI Pharmaceuticals go up and down completely randomly.

Pair Corralation between Immunocore Holdings and ANI Pharmaceuticals

Given the investment horizon of 90 days Immunocore Holdings is expected to under-perform the ANI Pharmaceuticals. In addition to that, Immunocore Holdings is 1.83 times more volatile than ANI Pharmaceuticals. It trades about -0.47 of its total potential returns per unit of risk. ANI Pharmaceuticals is currently generating about -0.09 per unit of volatility. If you would invest  6,736  in ANI Pharmaceuticals on March 7, 2024 and sell it today you would lose (260.00) from holding ANI Pharmaceuticals or give up 3.86% of portfolio value over 90 days.

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

Immunocore Holdings  vs.  ANI Pharmaceuticals

Immunocore Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immunocore Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in July 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

ANI Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Immunocore Holdings and ANI Pharmaceuticals

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

The idea behind Immunocore Holdings and ANI Pharmaceuticals 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.