Correlation Between Benitec Biopharma and Altimmune

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Can any of the company-specific risk be diversified away by investing in both Benitec Biopharma and Altimmune 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 Benitec Biopharma and Altimmune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benitec Biopharma Ltd and Altimmune, you can compare the effects of market volatilities on Benitec Biopharma and Altimmune 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 Benitec Biopharma with a short position of Altimmune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benitec Biopharma and Altimmune.

Diversification Opportunities for Benitec Biopharma and Altimmune

-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Benitec and Altimmune is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Benitec Biopharma Ltd and Altimmune in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altimmune and Benitec Biopharma 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 Benitec Biopharma Ltd are associated (or correlated) with Altimmune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altimmune has no effect on the direction of Benitec Biopharma i.e., Benitec Biopharma and Altimmune go up and down completely randomly.

Pair Corralation between Benitec Biopharma and Altimmune

Given the investment horizon of 90 days Benitec Biopharma Ltd is expected to under-perform the Altimmune. In addition to that, Benitec Biopharma is 1.21 times more volatile than Altimmune. It trades about -0.03 of its total potential returns per unit of risk. Altimmune is currently generating about 0.19 per unit of volatility. If you would invest  368.00  in Altimmune on September 3, 2025 and sell it today you would earn a total of  158.00  from holding Altimmune or generate 42.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Benitec Biopharma Ltd  vs.  Altimmune

 Performance 
       Timeline  
Benitec Biopharma 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Benitec Biopharma Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
Altimmune 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Altimmune are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile essential indicators, Altimmune unveiled solid returns over the last few months and may actually be approaching a breakup point.

Benitec Biopharma and Altimmune Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Benitec Biopharma and Altimmune

The main advantage of trading using opposite Benitec Biopharma and Altimmune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benitec Biopharma position performs unexpectedly, Altimmune 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 Altimmune will offset losses from the drop in Altimmune's long position.
The idea behind Benitec Biopharma Ltd and Altimmune 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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