Correlation Between ImmunoCellular Therapeutics and BioNTech

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

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

Diversification Opportunities for ImmunoCellular Therapeutics and BioNTech

0.58

Correlation Coefficient

ImmunoCellular Therapeutics  BioNTech

Very weak diversification

The 3 months correlation between ImmunoCellular and BioNTech is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding ImmunoCellular Therapeutics and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE and ImmunoCellular 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 ImmunoCellular Therapeutics are associated (or correlated) with BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of ImmunoCellular Therapeutics i.e., ImmunoCellular Therapeutics and BioNTech go up and down completely randomly.

Pair Corralation between ImmunoCellular Therapeutics and BioNTech

If you would invest  47.00  in ImmunoCellular Therapeutics on February 8, 2024 and sell it today you would earn a total of  0.00  from holding ImmunoCellular Therapeutics or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	2.38%
Values	Daily Returns

ImmunoCellular Therapeutics  vs.  BioNTech SE

ImmunoCellular Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

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

BioNTech SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BioNTech SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, BioNTech is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ImmunoCellular Therapeutics and BioNTech

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

The idea behind ImmunoCellular Therapeutics and BioNTech SE 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.