Correlation Between Home Consortium and Imugene
Can any of the company-specific risk be diversified away by investing in both Home Consortium 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 Home Consortium and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Consortium and Imugene, you can compare the effects of market volatilities on Home Consortium 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 Home Consortium with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Consortium and Imugene.
Diversification Opportunities for Home Consortium and Imugene
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Home and Imugene is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Home Consortium and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Home Consortium 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 Home Consortium 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 Home Consortium i.e., Home Consortium and Imugene go up and down completely randomly.
Pair Corralation between Home Consortium and Imugene
Assuming the 90 days trading horizon Home Consortium is expected to generate 0.44 times more return on investment than Imugene. However, Home Consortium is 2.3 times less risky than Imugene. It trades about 0.07 of its potential returns per unit of risk. Imugene is currently generating about -0.02 per unit of risk. If you would invest 455.00 in Home Consortium on October 21, 2024 and sell it today you would earn a total of 471.00 from holding Home Consortium or generate 103.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home Consortium vs. Imugene
Performance |
| Timeline |
| Home Consortium |
| Imugene |
Home Consortium and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Consortium and Imugene
The main advantage of trading using opposite Home Consortium and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Consortium 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.| Home Consortium vs. Ramsay Health Care | Home Consortium vs. Hutchison Telecommunications | Home Consortium vs. Spirit Telecom | Home Consortium vs. TPG Telecom |
| Imugene vs. Austco Healthcare | Imugene vs. Event Hospitality and | Imugene vs. Hutchison Telecommunications | Imugene vs. Ramsay Health Care |
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 CEOs Directory module to screen CEOs from public companies around the world.
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