Correlation Between Australia and Immuron
Can any of the company-specific risk be diversified away by investing in both Australia and Immuron 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 Australia and Immuron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Australia and New and Immuron, you can compare the effects of market volatilities on Australia and Immuron 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 Australia with a short position of Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australia and Immuron.
Diversification Opportunities for Australia and Immuron
Excellent diversification
The 3 months correlation between Australia and Immuron is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Australia and New and Immuron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron and Australia 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 Australia and New are associated (or correlated) with Immuron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuron has no effect on the direction of Australia i.e., Australia and Immuron go up and down completely randomly.
Pair Corralation between Australia and Immuron
Assuming the 90 days trading horizon Australia is expected to generate 4.8 times less return on investment than Immuron. But when comparing it to its historical volatility, Australia and New is 8.27 times less risky than Immuron. It trades about 0.07 of its potential returns per unit of risk. Immuron is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6.60 in Immuron on September 1, 2024 and sell it today you would earn a total of 1.10 from holding Immuron or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.48% |
| Values | Daily Returns |
Australia and New vs. Immuron
Performance |
| Timeline |
| Australia and New |
| Immuron |
Australia and Immuron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Australia and Immuron
The main advantage of trading using opposite Australia and Immuron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australia position performs unexpectedly, Immuron 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 Immuron will offset losses from the drop in Immuron's long position.| Australia vs. Navigator Global Investments | Australia vs. Actinogen Medical | Australia vs. Diversified United Investment | Australia vs. Lendlease Group |
| Immuron vs. Phoslock Environmental Technologies | Immuron vs. Alternative Investment Trust | Immuron vs. Red Hill Iron | Immuron vs. Computershare |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |