Correlation Between Imugene and Genscript Biotech

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

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

Diversification Opportunities for Imugene and Genscript Biotech

-0.42

Correlation Coefficient

Imugene  Genscript Biotech

Very good diversification

The 3 months correlation between Imugene and Genscript is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Imugene Limited and Genscript Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genscript Biotech and Imugene 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 Imugene Limited are associated (or correlated) with Genscript Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genscript Biotech has no effect on the direction of Imugene i.e., Imugene and Genscript Biotech go up and down completely randomly.

Pair Corralation between Imugene and Genscript Biotech

Assuming the 90 days horizon Imugene Limited is expected to under-perform the Genscript Biotech. In addition to that, Imugene is 3.01 times more volatile than Genscript Biotech. It trades about -0.05 of its total potential returns per unit of risk. Genscript Biotech is currently generating about 0.15 per unit of volatility. If you would invest  136.00  in Genscript Biotech on May 17, 2025 and sell it today you would earn a total of  83.00  from holding Genscript Biotech or generate 61.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

Imugene Limited  vs.  Genscript Biotech

Imugene Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Imugene Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Genscript Biotech

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Genscript Biotech are ranked lower than 11 (%) 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.

Pair Trading with Imugene and Genscript Biotech

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

The idea behind Imugene Limited and Genscript Biotech 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.