Correlation Between Apple and Immutep
Can any of the company-specific risk be diversified away by investing in both Apple and Immutep 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 Apple and Immutep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Immutep, you can compare the effects of market volatilities on Apple and Immutep 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 Apple with a short position of Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Immutep.
Diversification Opportunities for Apple and Immutep
Excellent diversification
The 3 months correlation between Apple and Immutep is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Immutep in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep and Apple 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 Apple Inc are associated (or correlated) with Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep has no effect on the direction of Apple i.e., Apple and Immutep go up and down completely randomly.
Pair Corralation between Apple and Immutep
Assuming the 90 days trading horizon Apple is expected to generate 18.46 times less return on investment than Immutep. But when comparing it to its historical volatility, Apple Inc is 31.32 times less risky than Immutep. It trades about 0.08 of its potential returns per unit of risk. Immutep is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Immutep on August 27, 2024 and sell it today you would lose (3.00) from holding Immutep or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Immutep
Performance |
| Timeline |
| Apple Inc |
| Immutep |
Apple and Immutep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Immutep
The main advantage of trading using opposite Apple and Immutep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Immutep 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 Immutep will offset losses from the drop in Immutep's long position.The idea behind Apple Inc and Immutep 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.| Immutep vs. Ribbon Communications | Immutep vs. ANTA SPORTS PRODUCT | Immutep vs. Consolidated Communications Holdings | Immutep vs. Iridium Communications |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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