Correlation Between CSL and Immutep
Can any of the company-specific risk be diversified away by investing in both CSL and Immutep 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 CSL and Immutep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSL and Immutep Limited, you can compare the effects of market volatilities on CSL and Immutep 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 CSL with a short position of Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and Immutep.
Diversification Opportunities for CSL and Immutep
Poor diversification
The 3 months correlation between CSL and Immutep is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CSL and Immutep Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep Limited and CSL 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 CSL are associated (or correlated) with Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep Limited has no effect on the direction of CSL i.e., CSL and Immutep go up and down completely randomly.
Pair Corralation between CSL and Immutep
If you would invest 20.00 in Immutep Limited on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Immutep Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CSL vs. Immutep Limited
Performance |
| Timeline |
| CSL |
| Immutep Limited |
CSL and Immutep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSL and Immutep
The main advantage of trading using opposite CSL and Immutep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL position performs unexpectedly, Immutep 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 Immutep will offset losses from the drop in Immutep's long position.The idea behind CSL and Immutep Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Immutep vs. Zura Bio Limited | Immutep vs. Enveric Biosciences | Immutep vs. Immix Biopharma | Immutep vs. Elevation Oncology |
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 Stocks Directory module to find actively traded stocks across global markets.
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