Correlation Between AC Immune and DatChat

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

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

Diversification Opportunities for AC Immune and DatChat

-0.12

Correlation Coefficient

AC Immune  DatChat

Good diversification

The 3 months correlation between ACIU and DatChat is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding AC Immune and DatChat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DatChat and AC Immune 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 AC Immune are associated (or correlated) with DatChat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DatChat has no effect on the direction of AC Immune i.e., AC Immune and DatChat go up and down completely randomly.

Pair Corralation between AC Immune and DatChat

Given the investment horizon of 90 days AC Immune is expected to generate 0.97 times more return on investment than DatChat. However, AC Immune is 1.03 times less risky than DatChat. It trades about 0.09 of its potential returns per unit of risk. DatChat is currently generating about -0.03 per unit of risk. If you would invest  174.00  in AC Immune on May 17, 2025 and sell it today you would earn a total of  39.00  from holding AC Immune or generate 22.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

AC Immune  vs.  DatChat

AC Immune

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in AC Immune are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, AC Immune unveiled solid returns over the last few months and may actually be approaching a breakup point.

DatChat

Risk-Adjusted Performance

Weakest

Over the last 90 days DatChat has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with AC Immune and DatChat

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

The idea behind AC Immune and DatChat 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.