Correlation Between Apiam Animal and Imugene
Can any of the company-specific risk be diversified away by investing in both Apiam Animal 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 Apiam Animal and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apiam Animal Health and Imugene, you can compare the effects of market volatilities on Apiam Animal 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 Apiam Animal with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apiam Animal and Imugene.
Diversification Opportunities for Apiam Animal and Imugene
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apiam and Imugene is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Apiam Animal Health and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Apiam Animal 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 Apiam Animal Health 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 Apiam Animal i.e., Apiam Animal and Imugene go up and down completely randomly.
Pair Corralation between Apiam Animal and Imugene
Assuming the 90 days trading horizon Apiam Animal Health is expected to generate 0.95 times more return on investment than Imugene. However, Apiam Animal Health is 1.06 times less risky than Imugene. It trades about 0.07 of its potential returns per unit of risk. Imugene is currently generating about -0.06 per unit of risk. If you would invest 24.00 in Apiam Animal Health on September 14, 2024 and sell it today you would earn a total of 18.00 from holding Apiam Animal Health or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apiam Animal Health vs. Imugene
Performance |
| Timeline |
| Apiam Animal Health |
| Imugene |
Apiam Animal and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apiam Animal and Imugene
The main advantage of trading using opposite Apiam Animal and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apiam Animal 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.| Apiam Animal vs. Alto Metals | Apiam Animal vs. Strickland Metals | Apiam Animal vs. Mirrabooka Investments | Apiam Animal vs. A1 Investments Resources |
| Imugene vs. MetalsGrove Mining | Imugene vs. Stelar Metals | Imugene vs. Charter Hall Retail | Imugene vs. Sky 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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