Correlation Between Immunic and Mustang Bio

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

Diversification Opportunities for Immunic and Mustang Bio

-0.13
  Correlation Coefficient

Good diversification

The 3 months correlation between Immunic and Mustang is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Immunic and Mustang Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mustang Bio and Immunic 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 Immunic are associated (or correlated) with Mustang Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mustang Bio has no effect on the direction of Immunic i.e., Immunic and Mustang Bio go up and down completely randomly.

Pair Corralation between Immunic and Mustang Bio

Given the investment horizon of 90 days Immunic is expected to generate 0.52 times more return on investment than Mustang Bio. However, Immunic is 1.93 times less risky than Mustang Bio. It trades about -0.06 of its potential returns per unit of risk. Mustang Bio is currently generating about -0.15 per unit of risk. If you would invest  139.00  in Immunic on December 29, 2023 and sell it today you would lose (7.00) from holding Immunic or give up 5.04% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Immunic  vs.  Mustang Bio

 Performance 
       Timeline  
Immunic 

Risk-Adjusted Performance

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Over the last 90 days Immunic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak 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.
Mustang Bio 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Mustang Bio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in April 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Immunic and Mustang Bio Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Immunic and Mustang Bio

The main advantage of trading using opposite Immunic and Mustang Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunic position performs unexpectedly, Mustang Bio 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 Mustang Bio will offset losses from the drop in Mustang Bio's long position.
The idea behind Immunic and Mustang Bio 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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