Correlation Between Replimune and Iteos Therapeutics

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

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

Diversification Opportunities for Replimune and Iteos Therapeutics

0.15

Correlation Coefficient

Replimune  Iteos Therapeutics

Average diversification

The 3 months correlation between Replimune and Iteos is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Replimune Group and Iteos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iteos Therapeutics and Replimune 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 Replimune Group are associated (or correlated) with Iteos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iteos Therapeutics has no effect on the direction of Replimune i.e., Replimune and Iteos Therapeutics go up and down completely randomly.

Pair Corralation between Replimune and Iteos Therapeutics

Given the investment horizon of 90 days Replimune Group is expected to generate 5.44 times more return on investment than Iteos Therapeutics. However, Replimune is 5.44 times more volatile than Iteos Therapeutics. It trades about 0.08 of its potential returns per unit of risk. Iteos Therapeutics is currently generating about 0.22 per unit of risk. If you would invest  771.00  in Replimune Group on May 9, 2025 and sell it today you would lose (221.00) from holding Replimune Group or give up 28.66% of portfolio value over 90 days.

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

Replimune Group  vs.  Iteos Therapeutics

Replimune Group

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Replimune Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Replimune disclosed solid returns over the last few months and may actually be approaching a breakup point.

Iteos Therapeutics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Iteos Therapeutics are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Iteos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Replimune and Iteos Therapeutics

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

The idea behind Replimune Group and Iteos Therapeutics 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.