Correlation Between YS Biopharma and AC Immune

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

By analyzing existing cross correlation between YS Biopharma Co and AC Immune, you can compare the effects of market volatilities on YS Biopharma and AC Immune 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 YS Biopharma with a short position of AC Immune. Check out your portfolio center. Please also check ongoing floating volatility patterns of YS Biopharma and AC Immune.

Diversification Opportunities for YS Biopharma and AC Immune

-0.01

Correlation Coefficient

YS Biopharma  AC Immune

Good diversification

The 3 months correlation between YS Biopharma and ACIU is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding YS Biopharma Co and AC Immune in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC Immune and YS Biopharma 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 YS Biopharma Co are associated (or correlated) with AC Immune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC Immune has no effect on the direction of YS Biopharma i.e., YS Biopharma and AC Immune go up and down completely randomly.

Pair Corralation between YS Biopharma and AC Immune

Allowing for the 90-day total investment horizon YS Biopharma is expected to generate 6.02 times less return on investment than AC Immune. But when comparing it to its historical volatility, YS Biopharma Co is 1.84 times less risky than AC Immune. It trades about 0.11 of its potential returns per unit of risk. AC Immune is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest  235.00  in AC Immune on March 9, 2024 and sell it today you would earn a total of  252.00  from holding AC Immune or generate 107.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

YS Biopharma Co  vs.  AC Immune

YS Biopharma

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days YS Biopharma Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, YS Biopharma unveiled solid returns over the last few months and may actually be approaching a breakup point.

AC Immune

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AC Immune are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak forward indicators, AC Immune unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with YS Biopharma and AC Immune

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

The idea behind YS Biopharma Co and AC Immune 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.