Correlation Between Immuron and Carnegie Clean
Can any of the company-specific risk be diversified away by investing in both Immuron and Carnegie Clean 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 Immuron and Carnegie Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immuron and Carnegie Clean Energy, you can compare the effects of market volatilities on Immuron and Carnegie Clean 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 Immuron with a short position of Carnegie Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immuron and Carnegie Clean.
Diversification Opportunities for Immuron and Carnegie Clean
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Immuron and Carnegie is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Immuron and Carnegie Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carnegie Clean Energy and Immuron 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 Immuron are associated (or correlated) with Carnegie Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carnegie Clean Energy has no effect on the direction of Immuron i.e., Immuron and Carnegie Clean go up and down completely randomly.
Pair Corralation between Immuron and Carnegie Clean
Assuming the 90 days trading horizon Immuron is expected to generate 0.87 times more return on investment than Carnegie Clean. However, Immuron is 1.15 times less risky than Carnegie Clean. It trades about 0.21 of its potential returns per unit of risk. Carnegie Clean Energy is currently generating about 0.02 per unit of risk. If you would invest 7.30 in Immuron on September 12, 2024 and sell it today you would earn a total of 1.10 from holding Immuron or generate 15.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immuron vs. Carnegie Clean Energy
Performance |
| Timeline |
| Immuron |
| Carnegie Clean Energy |
Immuron and Carnegie Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immuron and Carnegie Clean
The main advantage of trading using opposite Immuron and Carnegie Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immuron position performs unexpectedly, Carnegie Clean 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 Carnegie Clean will offset losses from the drop in Carnegie Clean's long position.| Immuron vs. Bluescope Steel | Immuron vs. Vulcan Steel | Immuron vs. Queste Communications | Immuron vs. Chalice Mining Limited |
| Carnegie Clean vs. Queste Communications | Carnegie Clean vs. Latitude Financial Services | Carnegie Clean vs. Diversified United Investment | Carnegie Clean vs. Insignia Financial |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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