Correlation Between Immatics and Prothena Plc
Can any of the company-specific risk be diversified away by investing in both Immatics and Prothena Plc 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 Immatics and Prothena Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immatics NV and Prothena plc, you can compare the effects of market volatilities on Immatics and Prothena Plc 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 Immatics with a short position of Prothena Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immatics and Prothena Plc.
Diversification Opportunities for Immatics and Prothena Plc
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Immatics and Prothena is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Immatics NV and Prothena plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prothena plc and Immatics 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 Immatics NV are associated (or correlated) with Prothena Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prothena plc has no effect on the direction of Immatics i.e., Immatics and Prothena Plc go up and down completely randomly.
Pair Corralation between Immatics and Prothena Plc
Given the investment horizon of 90 days Immatics NV is expected to generate 1.76 times more return on investment than Prothena Plc. However, Immatics is 1.76 times more volatile than Prothena plc. It trades about 0.19 of its potential returns per unit of risk. Prothena plc is currently generating about 0.15 per unit of risk. If you would invest 581.00 in Immatics NV on September 8, 2025 and sell it today you would earn a total of 437.00 from holding Immatics NV or generate 75.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immatics NV vs. Prothena plc
Performance |
| Timeline |
| Immatics NV |
| Prothena plc |
Immatics and Prothena Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immatics and Prothena Plc
The main advantage of trading using opposite Immatics and Prothena Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immatics position performs unexpectedly, Prothena Plc 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 Prothena Plc will offset losses from the drop in Prothena Plc's long position.| Immatics vs. T Mobile US, 5500 | Immatics vs. Cabal Communications | Immatics vs. Space Communication | Immatics vs. Fair Isaac |
| Prothena Plc vs. Network Media Group | Prothena Plc vs. National CineMedia | Prothena Plc vs. Stewart Information Services | Prothena Plc vs. Data Evolution Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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