Correlation Between Immatics and Amicus Therapeutics

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Can any of the company-specific risk be diversified away by investing in both Immatics and Amicus Therapeutics 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 Immatics and Amicus Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immatics NV and Amicus Therapeutics, you can compare the effects of market volatilities on Immatics and Amicus Therapeutics 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 Immatics with a short position of Amicus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immatics and Amicus Therapeutics.

Diversification Opportunities for Immatics and Amicus Therapeutics

0.3
  Correlation Coefficient

Weak diversification

The 3 months correlation between Immatics and Amicus is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Immatics NV and Amicus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amicus Therapeutics and Immatics 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 Immatics NV are associated (or correlated) with Amicus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amicus Therapeutics has no effect on the direction of Immatics i.e., Immatics and Amicus Therapeutics go up and down completely randomly.

Pair Corralation between Immatics and Amicus Therapeutics

Given the investment horizon of 90 days Immatics NV is expected to under-perform the Amicus Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Immatics NV is 1.12 times less risky than Amicus Therapeutics. The stock trades about -0.05 of its potential returns per unit of risk. The Amicus Therapeutics is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  1,009  in Amicus Therapeutics on February 21, 2022 and sell it today you would lose (233.00)  from holding Amicus Therapeutics or give up 23.09% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Immatics NV  vs.  Amicus Therapeutics

 Performance (%) 
      Timeline 
Immatics NV 
Immatics Performance
0 of 100
Over the last 90 days Immatics NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Immatics Price Channel

Amicus Therapeutics 
Amicus Performance
0 of 100
Over the last 90 days Amicus Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Amicus Therapeutics is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Amicus Price Channel

Immatics and Amicus Therapeutics Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Immatics and Amicus Therapeutics

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

Immatics NV

Pair trading matchups for Immatics

The idea behind Immatics NV and Amicus Therapeutics 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.

Amicus Therapeutics

Pair trading matchups for Amicus Therapeutics

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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