Correlation Between Immunocore Holdings and Cullinan Oncology

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

By analyzing existing cross correlation between Immunocore Holdings and Cullinan Oncology LLC, you can compare the effects of market volatilities on Immunocore Holdings and Cullinan Oncology 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 Cullinan Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunocore Holdings and Cullinan Oncology.

Diversification Opportunities for Immunocore Holdings and Cullinan Oncology

-0.33

Correlation Coefficient

Immunocore Holdings  Cullinan Oncology

Very good diversification

The 3 months correlation between Immunocore and Cullinan is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Immunocore Holdings and Cullinan Oncology LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullinan Oncology LLC 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 Cullinan Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullinan Oncology LLC has no effect on the direction of Immunocore Holdings i.e., Immunocore Holdings and Cullinan Oncology go up and down completely randomly.

Pair Corralation between Immunocore Holdings and Cullinan Oncology

Given the investment horizon of 90 days Immunocore Holdings is expected to under-perform the Cullinan Oncology. But the stock apears to be less risky and, when comparing its historical volatility, Immunocore Holdings is 1.03 times less risky than Cullinan Oncology. The stock trades about -0.48 of its potential returns per unit of risk. The Cullinan Oncology LLC is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest  2,717  in Cullinan Oncology LLC on March 10, 2024 and sell it today you would lose (477.00) from holding Cullinan Oncology LLC or give up 17.56% of portfolio value over 90 days.

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

Immunocore Holdings  vs.  Cullinan Oncology LLC

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 inconsistent 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.

Cullinan Oncology LLC

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cullinan Oncology LLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Cullinan Oncology displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Immunocore Holdings and Cullinan Oncology

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

The idea behind Immunocore Holdings and Cullinan Oncology LLC 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.

Check out your portfolio center.

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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.