Correlation Between Computershare and Immuron
Can any of the company-specific risk be diversified away by investing in both Computershare 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 Computershare and Immuron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computershare and Immuron, you can compare the effects of market volatilities on Computershare 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 Computershare with a short position of Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computershare and Immuron.
Diversification Opportunities for Computershare and Immuron
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Computershare and Immuron is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Computershare and Immuron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron and Computershare 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 Computershare 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 Computershare i.e., Computershare and Immuron go up and down completely randomly.
Pair Corralation between Computershare and Immuron
Assuming the 90 days trading horizon Computershare is expected to generate 0.75 times more return on investment than Immuron. However, Computershare is 1.34 times less risky than Immuron. It trades about 0.48 of its potential returns per unit of risk. Immuron is currently generating about 0.01 per unit of risk. If you would invest 2,638 in Computershare on September 1, 2024 and sell it today you would earn a total of 551.00 from holding Computershare or generate 20.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Computershare vs. Immuron
Performance |
| Timeline |
| Computershare |
| Immuron |
Computershare and Immuron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computershare and Immuron
The main advantage of trading using opposite Computershare and Immuron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computershare 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.| Computershare vs. Aneka Tambang Tbk | Computershare vs. Unibail Rodamco Westfield SE | Computershare vs. Macquarie Group | Computershare vs. Commonwealth Bank |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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