Correlation Between Carnegie Clean and Immuron
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean 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 Carnegie Clean and Immuron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and Immuron, you can compare the effects of market volatilities on Carnegie Clean 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 Carnegie Clean with a short position of Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and Immuron.
Diversification Opportunities for Carnegie Clean and Immuron
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carnegie and Immuron is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and Immuron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron and Carnegie Clean 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 Carnegie Clean Energy 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 Carnegie Clean i.e., Carnegie Clean and Immuron go up and down completely randomly.
Pair Corralation between Carnegie Clean and Immuron
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to generate 3.95 times more return on investment than Immuron. However, Carnegie Clean is 3.95 times more volatile than Immuron. It trades about 0.1 of its potential returns per unit of risk. Immuron is currently generating about 0.03 per unit of risk. If you would invest 10.00 in Carnegie Clean Energy on September 5, 2024 and sell it today you would lose (5.90) from holding Carnegie Clean Energy or give up 59.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Carnegie Clean Energy vs. Immuron
Performance |
| Timeline |
| Carnegie Clean Energy |
| Immuron |
Carnegie Clean and Immuron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and Immuron
The main advantage of trading using opposite Carnegie Clean and Immuron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean 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.| Carnegie Clean vs. Farm Pride Foods | Carnegie Clean vs. Hutchison Telecommunications | Carnegie Clean vs. Queste Communications | Carnegie Clean vs. Spirit Telecom |
| Immuron vs. Carnegie Clean Energy | Immuron vs. My Foodie Box | Immuron vs. Data3 | Immuron vs. Seven West Media |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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