Correlation Between Capitol Health and Imugene
Can any of the company-specific risk be diversified away by investing in both Capitol Health 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 Capitol Health and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capitol Health and Imugene, you can compare the effects of market volatilities on Capitol Health 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 Capitol Health with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capitol Health and Imugene.
Diversification Opportunities for Capitol Health and Imugene
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capitol and Imugene is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Capitol Health and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Capitol Health 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 Capitol 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 Capitol Health i.e., Capitol Health and Imugene go up and down completely randomly.
Pair Corralation between Capitol Health and Imugene
Assuming the 90 days trading horizon Capitol Health is expected to generate 0.62 times more return on investment than Imugene. However, Capitol Health is 1.61 times less risky than Imugene. It trades about 0.09 of its potential returns per unit of risk. Imugene is currently generating about -0.06 per unit of risk. If you would invest 22.00 in Capitol Health on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Capitol Health or generate 72.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capitol Health vs. Imugene
Performance |
| Timeline |
| Capitol Health |
| Imugene |
Capitol Health and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capitol Health and Imugene
The main advantage of trading using opposite Capitol Health and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capitol Health 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.| Capitol Health vs. CSL | Capitol Health vs. Tamawood | Capitol Health vs. Cochlear | Capitol Health vs. Rea Group |
| Imugene vs. Clime Investment Management | Imugene vs. Viva Leisure | Imugene vs. Kip McGrath Education | Imugene vs. Saferoads 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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