Correlation Between Global Health and Immuron
Can any of the company-specific risk be diversified away by investing in both Global Health 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 Global Health and Immuron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Health and Immuron, you can compare the effects of market volatilities on Global Health 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 Global Health with a short position of Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Health and Immuron.
Diversification Opportunities for Global Health and Immuron
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Immuron is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Global Health and Immuron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron and Global Health 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 Global Health 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 Global Health i.e., Global Health and Immuron go up and down completely randomly.
Pair Corralation between Global Health and Immuron
Assuming the 90 days trading horizon Global Health is expected to under-perform the Immuron. In addition to that, Global Health is 1.09 times more volatile than Immuron. It trades about -0.11 of its total potential returns per unit of risk. Immuron is currently generating about 0.01 per unit of volatility. If you would invest 7.70 in Immuron on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Immuron or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Health vs. Immuron
Performance |
| Timeline |
| Global Health |
| Immuron |
Global Health and Immuron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Health and Immuron
The main advantage of trading using opposite Global Health and Immuron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Health 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.| Global Health vs. Westpac Banking | Global Health vs. Champion Iron | Global Health vs. Ridley | Global Health vs. Peel Mining |
| Immuron vs. Global Health | Immuron vs. EVE Health Group | Immuron vs. Hotel Property Investments | Immuron vs. Singular Health Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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