Correlation Between PAMT P and Immunitybio

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

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

Diversification Opportunities for PAMT P and Immunitybio

0.22

Correlation Coefficient

PAMT P  Immunitybio

Modest diversification

The 3 months correlation between PAMT and Immunitybio is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding PAMT P and Immunitybio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunitybio and PAMT P 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 PAMT P 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 PAMT P i.e., PAMT P and Immunitybio go up and down completely randomly.

Pair Corralation between PAMT P and Immunitybio

Given the investment horizon of 90 days PAMT P is expected to under-perform the Immunitybio. But the stock apears to be less risky and, when comparing its historical volatility, PAMT P is 1.28 times less risky than Immunitybio. The stock trades about -0.03 of its potential returns per unit of risk. The Immunitybio is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  280.00  in Immunitybio on May 19, 2025 and sell it today you would lose (25.00) from holding Immunitybio or give up 8.93% of portfolio value over 90 days.

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

PAMT P  vs.  Immunitybio

PAMT P

Risk-Adjusted Performance

Weakest

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

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 fairly strong basic indicators, Immunitybio is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PAMT P and Immunitybio

The main advantage of trading using opposite PAMT P and Immunitybio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PAMT P 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 PAMT P 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.