Correlation Between ImmuPharma PLC and American Express
Can any of the company-specific risk be diversified away by investing in both ImmuPharma PLC and American Express 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 ImmuPharma PLC and American Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuPharma PLC and American Express Co, you can compare the effects of market volatilities on ImmuPharma PLC and American Express 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 ImmuPharma PLC with a short position of American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuPharma PLC and American Express.
Diversification Opportunities for ImmuPharma PLC and American Express
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ImmuPharma and American is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ImmuPharma PLC and American Express Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express and ImmuPharma PLC 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 ImmuPharma PLC are associated (or correlated) with American Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of ImmuPharma PLC i.e., ImmuPharma PLC and American Express go up and down completely randomly.
Pair Corralation between ImmuPharma PLC and American Express
Assuming the 90 days trading horizon ImmuPharma PLC is expected to generate 16.03 times more return on investment than American Express. However, ImmuPharma PLC is 16.03 times more volatile than American Express Co. It trades about 0.11 of its potential returns per unit of risk. American Express Co is currently generating about 0.2 per unit of risk. If you would invest 179.00 in ImmuPharma PLC on October 26, 2024 and sell it today you would earn a total of 181.00 from holding ImmuPharma PLC or generate 101.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuPharma PLC vs. American Express Co
Performance |
| Timeline |
| ImmuPharma PLC |
| American Express |
ImmuPharma PLC and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuPharma PLC and American Express
The main advantage of trading using opposite ImmuPharma PLC and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuPharma PLC position performs unexpectedly, American Express 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 American Express will offset losses from the drop in American Express' long position.| ImmuPharma PLC vs. Beowulf Mining | ImmuPharma PLC vs. Coeur Mining | ImmuPharma PLC vs. Atalaya Mining | ImmuPharma PLC vs. Metals Exploration Plc |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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