Correlation Between Viking Therapeutics and Immunocore Holdings

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

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

Diversification Opportunities for Viking Therapeutics and Immunocore Holdings

0.35

Correlation Coefficient

Viking Therapeutics  Immunocore Holdings

Weak diversification

The 3 months correlation between Viking and Immunocore is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Viking Therapeutics and Immunocore Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunocore Holdings and Viking Therapeutics 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 Viking Therapeutics are associated (or correlated) with Immunocore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunocore Holdings has no effect on the direction of Viking Therapeutics i.e., Viking Therapeutics and Immunocore Holdings go up and down completely randomly.

Pair Corralation between Viking Therapeutics and Immunocore Holdings

Given the investment horizon of 90 days Viking Therapeutics is expected to generate 1.15 times more return on investment than Immunocore Holdings. However, Viking Therapeutics is 1.15 times more volatile than Immunocore Holdings. It trades about 0.12 of its potential returns per unit of risk. Immunocore Holdings is currently generating about 0.06 per unit of risk. If you would invest  2,756  in Viking Therapeutics on May 7, 2025 and sell it today you would earn a total of  642.00  from holding Viking Therapeutics or generate 23.29% return on investment over 90 days.

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

Viking Therapeutics  vs.  Immunocore Holdings

Viking Therapeutics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Viking Therapeutics are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Viking Therapeutics showed solid returns over the last few months and may actually be approaching a breakup point.

Immunocore Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Immunocore Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting fundamental indicators, Immunocore Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Viking Therapeutics and Immunocore Holdings

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

The idea behind Viking Therapeutics and Immunocore Holdings 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.