Correlation Between Austco Healthcare and Imugene
Can any of the company-specific risk be diversified away by investing in both Austco Healthcare and Imugene 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 Austco Healthcare and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austco Healthcare and Imugene, you can compare the effects of market volatilities on Austco Healthcare and Imugene 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 Austco Healthcare with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austco Healthcare and Imugene.
Diversification Opportunities for Austco Healthcare and Imugene
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Austco and Imugene is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Austco Healthcare and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Austco Healthcare 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 Austco Healthcare are associated (or correlated) with Imugene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imugene has no effect on the direction of Austco Healthcare i.e., Austco Healthcare and Imugene go up and down completely randomly.
Pair Corralation between Austco Healthcare and Imugene
Assuming the 90 days trading horizon Austco Healthcare is expected to generate 0.65 times more return on investment than Imugene. However, Austco Healthcare is 1.55 times less risky than Imugene. It trades about 0.07 of its potential returns per unit of risk. Imugene is currently generating about -0.02 per unit of risk. If you would invest 12.00 in Austco Healthcare on October 21, 2024 and sell it today you would earn a total of 20.00 from holding Austco Healthcare or generate 166.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austco Healthcare vs. Imugene
Performance |
| Timeline |
| Austco Healthcare |
| Imugene |
Austco Healthcare and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austco Healthcare and Imugene
The main advantage of trading using opposite Austco Healthcare and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austco Healthcare position performs unexpectedly, Imugene 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 Imugene will offset losses from the drop in Imugene's long position.| Austco Healthcare vs. Queste Communications | Austco Healthcare vs. Kkr Credit Income | Austco Healthcare vs. Westpac Banking | Austco Healthcare vs. Insignia Financial |
| Imugene vs. FireFly Metals | Imugene vs. Stelar Metals | Imugene vs. Everest Metals | Imugene vs. Hammer Metals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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