Correlation Between Credit Corp and Immuron
Can any of the company-specific risk be diversified away by investing in both Credit Corp 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 Credit Corp and Immuron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Corp Group and Immuron, you can compare the effects of market volatilities on Credit Corp 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 Credit Corp with a short position of Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Corp and Immuron.
Diversification Opportunities for Credit Corp and Immuron
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and Immuron is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Credit Corp Group and Immuron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron and Credit Corp 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 Credit Corp Group 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 Credit Corp i.e., Credit Corp and Immuron go up and down completely randomly.
Pair Corralation between Credit Corp and Immuron
Assuming the 90 days trading horizon Credit Corp is expected to generate 73.76 times less return on investment than Immuron. But when comparing it to its historical volatility, Credit Corp Group is 3.74 times less risky than Immuron. It trades about 0.0 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 | Significant |
| Accuracy | 99.48% |
| Values | Daily Returns |
Credit Corp Group vs. Immuron
Performance |
| Timeline |
| Credit Corp Group |
| Immuron |
Credit Corp and Immuron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Corp and Immuron
The main advantage of trading using opposite Credit Corp and Immuron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Corp 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.| Credit Corp vs. Inventis | Credit Corp vs. Pengana Private Equity | Credit Corp vs. PM Capital Global | Credit Corp vs. Macquarie Group Ltd |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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