Correlation Between Clime Investment and Imugene
Can any of the company-specific risk be diversified away by investing in both Clime Investment 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 Clime Investment and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clime Investment Management and Imugene, you can compare the effects of market volatilities on Clime Investment 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 Clime Investment with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clime Investment and Imugene.
Diversification Opportunities for Clime Investment and Imugene
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clime and Imugene is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Clime Investment Management and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Clime Investment 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 Clime Investment Management 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 Clime Investment i.e., Clime Investment and Imugene go up and down completely randomly.
Pair Corralation between Clime Investment and Imugene
Assuming the 90 days trading horizon Clime Investment Management is expected to generate 0.43 times more return on investment than Imugene. However, Clime Investment Management is 2.32 times less risky than Imugene. It trades about -0.02 of its potential returns per unit of risk. Imugene is currently generating about -0.03 per unit of risk. If you would invest 46.00 in Clime Investment Management on September 12, 2024 and sell it today you would lose (12.00) from holding Clime Investment Management or give up 26.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clime Investment Management vs. Imugene
Performance |
| Timeline |
| Clime Investment Man |
| Imugene |
Clime Investment and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clime Investment and Imugene
The main advantage of trading using opposite Clime Investment and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clime Investment 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.| Clime Investment vs. Macquarie Technology Group | Clime Investment vs. Carawine Resources Limited | Clime Investment vs. Saferoads Holdings | Clime Investment vs. Cleanaway Waste Management |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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