Correlation Between Energy Resources and Imugene
Can any of the company-specific risk be diversified away by investing in both Energy Resources 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 Energy Resources and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Resources and Imugene, you can compare the effects of market volatilities on Energy Resources 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 Energy Resources with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Resources and Imugene.
Diversification Opportunities for Energy Resources and Imugene
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Energy and Imugene is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Energy Resources and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Energy Resources 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 Energy Resources 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 Energy Resources i.e., Energy Resources and Imugene go up and down completely randomly.
Pair Corralation between Energy Resources and Imugene
Assuming the 90 days trading horizon Energy Resources is expected to generate 6.68 times more return on investment than Imugene. However, Energy Resources is 6.68 times more volatile than Imugene. It trades about 0.13 of its potential returns per unit of risk. Imugene is currently generating about -0.17 per unit of risk. If you would invest 0.30 in Energy Resources on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Energy Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Resources vs. Imugene
Performance |
| Timeline |
| Energy Resources |
| Imugene |
Energy Resources and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Resources and Imugene
The main advantage of trading using opposite Energy Resources and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Resources 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.| Energy Resources vs. AiMedia Technologies | Energy Resources vs. Infomedia | Energy Resources vs. Argo Investments | Energy Resources vs. Collins Foods |
| Imugene vs. Navigator Global Investments | Imugene vs. Pinnacle Investment Management | Imugene vs. Queste Communications | Imugene vs. Carlton Investments |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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