Correlation Between Genscript Biotech and Imugene

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

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

Diversification Opportunities for Genscript Biotech and Imugene

-0.71

Correlation Coefficient

Genscript Biotech  Imugene

Pay attention - limited upside

The 3 months correlation between Genscript and Imugene is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Genscript Biotech and Imugene Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene Limited and Genscript Biotech 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 Genscript Biotech are associated (or correlated) with Imugene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imugene Limited has no effect on the direction of Genscript Biotech i.e., Genscript Biotech and Imugene go up and down completely randomly.

Pair Corralation between Genscript Biotech and Imugene

Assuming the 90 days horizon Genscript Biotech is expected to generate 0.31 times more return on investment than Imugene. However, Genscript Biotech is 3.2 times less risky than Imugene. It trades about 0.14 of its potential returns per unit of risk. Imugene Limited is currently generating about 0.0 per unit of risk. If you would invest  130.00  in Genscript Biotech on May 5, 2025 and sell it today you would earn a total of  70.00  from holding Genscript Biotech or generate 53.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Genscript Biotech  vs.  Imugene Limited

Genscript Biotech

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Genscript Biotech are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genscript Biotech reported solid returns over the last few months and may actually be approaching a breakup point.

Imugene Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Imugene Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Imugene is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Genscript Biotech and Imugene

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

The idea behind Genscript Biotech and Imugene Limited 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.