Correlation Between Fennec Pharmaceuticals and Immunitybio

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

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

Diversification Opportunities for Fennec Pharmaceuticals and Immunitybio

0.13

Correlation Coefficient

Fennec Pharmaceuticals  Immunitybio

Average diversification

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

Pair Corralation between Fennec Pharmaceuticals and Immunitybio

Given the investment horizon of 90 days Fennec Pharmaceuticals is expected to generate 0.71 times more return on investment than Immunitybio. However, Fennec Pharmaceuticals is 1.42 times less risky than Immunitybio. It trades about 0.03 of its potential returns per unit of risk. Immunitybio is currently generating about -0.03 per unit of risk. If you would invest  817.00  in Fennec Pharmaceuticals on May 20, 2025 and sell it today you would earn a total of  19.00  from holding Fennec Pharmaceuticals or generate 2.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fennec Pharmaceuticals  vs.  Immunitybio

Fennec Pharmaceuticals

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Fennec Pharmaceuticals are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Fennec Pharmaceuticals is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Immunitybio

Risk-Adjusted Performance

Weakest

Over the last 90 days Immunitybio 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.

Pair Trading with Fennec Pharmaceuticals and Immunitybio

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

The idea behind Fennec Pharmaceuticals and Immunitybio 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.