Correlation Between Immatics and Moleculin Biotech

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Immatics and Moleculin Biotech 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 Moleculin Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immatics NV and Moleculin Biotech, you can compare the effects of market volatilities on Immatics and Moleculin Biotech 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 Moleculin Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immatics and Moleculin Biotech.

Diversification Opportunities for Immatics and Moleculin Biotech

-0.24
  Correlation Coefficient

Very good diversification

The 3 months correlation between Immatics and Moleculin is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Immatics NV and Moleculin Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moleculin Biotech 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 Moleculin Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moleculin Biotech has no effect on the direction of Immatics i.e., Immatics and Moleculin Biotech go up and down completely randomly.

Pair Corralation between Immatics and Moleculin Biotech

Given the investment horizon of 90 days Immatics NV is expected to generate 0.24 times more return on investment than Moleculin Biotech. However, Immatics NV is 4.14 times less risky than Moleculin Biotech. It trades about -0.25 of its potential returns per unit of risk. Moleculin Biotech is currently generating about -0.22 per unit of risk. If you would invest  1,256  in Immatics NV on December 29, 2023 and sell it today you would lose (146.00) from holding Immatics NV or give up 11.62% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Immatics NV  vs.  Moleculin Biotech

 Performance 
       Timeline  
Immatics NV 

Risk-Adjusted Performance

3 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Immatics NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Immatics may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Moleculin Biotech 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Moleculin Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Immatics and Moleculin Biotech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Immatics and Moleculin Biotech

The main advantage of trading using opposite Immatics and Moleculin Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immatics position performs unexpectedly, Moleculin Biotech 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 Moleculin Biotech will offset losses from the drop in Moleculin Biotech's long position.
The idea behind Immatics NV and Moleculin Biotech 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Stocks Directory
Find actively traded stocks across global markets
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges