Correlation Between Solid Biosciences and Immuron

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

By analyzing existing cross correlation between Solid Biosciences LLC and Immuron Ltd ADR, you can compare the effects of market volatilities on Solid Biosciences and Immuron 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 Solid Biosciences with a short position of Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Biosciences and Immuron.

Diversification Opportunities for Solid Biosciences and Immuron

-0.43

Correlation Coefficient

Solid Biosciences  Immuron

Very good diversification

The 3 months correlation between Solid and Immuron is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Solid Biosciences LLC and Immuron Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron Ltd ADR and Solid Biosciences 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 Solid Biosciences LLC are associated (or correlated) with Immuron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuron Ltd ADR has no effect on the direction of Solid Biosciences i.e., Solid Biosciences and Immuron go up and down completely randomly.

Pair Corralation between Solid Biosciences and Immuron

Given the investment horizon of 90 days Solid Biosciences LLC is expected to generate 1.53 times more return on investment than Immuron. However, Solid Biosciences is 1.53 times more volatile than Immuron Ltd ADR. It trades about 0.28 of its potential returns per unit of risk. Immuron Ltd ADR is currently generating about 0.05 per unit of risk. If you would invest  277.00  in Solid Biosciences LLC on May 16, 2025 and sell it today you would earn a total of  340.00  from holding Solid Biosciences LLC or generate 122.74% return on investment over 90 days.

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

Solid Biosciences LLC  vs.  Immuron Ltd ADR

Solid Biosciences LLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Solid Biosciences LLC are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Solid Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

Immuron Ltd ADR

Risk-Adjusted Performance

Soft

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

Pair Trading with Solid Biosciences and Immuron

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

The idea behind Solid Biosciences LLC and Immuron Ltd ADR 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.