Correlation Between Immunoprecise Antibodies and Mustang Bio

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

Diversification Opportunities for Immunoprecise Antibodies and Mustang Bio

0.03
  Correlation Coefficient

Significant diversification

The 3 months correlation between Immunoprecise and Mustang is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Immunoprecise Antibodies and Mustang Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mustang Bio and Immunoprecise Antibodies 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 Immunoprecise Antibodies 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 Immunoprecise Antibodies i.e., Immunoprecise Antibodies and Mustang Bio go up and down completely randomly.

Pair Corralation between Immunoprecise Antibodies and Mustang Bio

Considering the 90-day investment horizon Immunoprecise Antibodies is expected to generate 4.79 times more return on investment than Mustang Bio. However, Immunoprecise Antibodies is 4.79 times more volatile than Mustang Bio. It trades about 0.05 of its potential returns per unit of risk. Mustang Bio is currently generating about -0.05 per unit of risk. If you would invest  130.00  in Immunoprecise Antibodies on February 27, 2022 and sell it today you would earn a total of  400.00  from holding Immunoprecise Antibodies or generate 307.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Immunoprecise Antibodies  vs.  Mustang Bio

 Performance (%) 
      Timeline 
Immunoprecise Antibodies 
Immunoprecise Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Immunoprecise Antibodies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Immunoprecise Antibodies sustained solid returns over the last few months and may actually be approaching a breakup point.

Immunoprecise Price Channel

Mustang Bio 
Mustang Performance
0 of 100
Over the last 90 days Mustang Bio has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's forward indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Mustang Price Channel

Immunoprecise Antibodies and Mustang Bio Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Immunoprecise Antibodies and Mustang Bio

The main advantage of trading using opposite Immunoprecise Antibodies and Mustang Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunoprecise Antibodies 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.

Immunoprecise Antibodies

Pair trading matchups for Immunoprecise Antibodies

The idea behind Immunoprecise Antibodies 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.

Mustang Bio

Pair trading matchups for Mustang Bio

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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