Correlation Between Immunitybio and Fennec Pharmaceuticals

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

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

Diversification Opportunities for Immunitybio and Fennec Pharmaceuticals

0.38

Correlation Coefficient

Immunitybio  Fennec Pharmaceuticals

Weak diversification

The 3 months correlation between Immunitybio and Fennec is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Immunitybio and Fennec Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fennec Pharmaceuticals and Immunitybio 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 Immunitybio are associated (or correlated) with Fennec Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fennec Pharmaceuticals has no effect on the direction of Immunitybio i.e., Immunitybio and Fennec Pharmaceuticals go up and down completely randomly.

Pair Corralation between Immunitybio and Fennec Pharmaceuticals

Given the investment horizon of 90 days Immunitybio is expected to generate 3.25 times less return on investment than Fennec Pharmaceuticals. In addition to that, Immunitybio is 1.27 times more volatile than Fennec Pharmaceuticals. It trades about 0.04 of its total potential returns per unit of risk. Fennec Pharmaceuticals is currently generating about 0.17 per unit of volatility. If you would invest  655.00  in Fennec Pharmaceuticals on May 15, 2025 and sell it today you would earn a total of  252.00  from holding Fennec Pharmaceuticals or generate 38.47% return on investment over 90 days.

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

Immunitybio  vs.  Fennec Pharmaceuticals

Immunitybio

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Immunitybio are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Immunitybio may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Fennec Pharmaceuticals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fennec Pharmaceuticals are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Fennec Pharmaceuticals exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Immunitybio and Fennec Pharmaceuticals

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

The idea behind Immunitybio and Fennec Pharmaceuticals 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..