Correlation Between ImmuPharma PLC and Baring Emerging
Can any of the company-specific risk be diversified away by investing in both ImmuPharma PLC and Baring Emerging 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 Baring Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuPharma PLC and Baring Emerging Europe, you can compare the effects of market volatilities on ImmuPharma PLC and Baring Emerging 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 Baring Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuPharma PLC and Baring Emerging.
Diversification Opportunities for ImmuPharma PLC and Baring Emerging
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ImmuPharma and Baring is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ImmuPharma PLC and Baring Emerging Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baring Emerging Europe 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 Baring Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baring Emerging Europe has no effect on the direction of ImmuPharma PLC i.e., ImmuPharma PLC and Baring Emerging go up and down completely randomly.
Pair Corralation between ImmuPharma PLC and Baring Emerging
Assuming the 90 days trading horizon ImmuPharma PLC is expected to generate 6.04 times more return on investment than Baring Emerging. However, ImmuPharma PLC is 6.04 times more volatile than Baring Emerging Europe. It trades about 0.06 of its potential returns per unit of risk. Baring Emerging Europe is currently generating about 0.1 per unit of risk. If you would invest 108.00 in ImmuPharma PLC on August 27, 2024 and sell it today you would earn a total of 49.00 from holding ImmuPharma PLC or generate 45.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
ImmuPharma PLC vs. Baring Emerging Europe
Performance |
| Timeline |
| ImmuPharma PLC |
| Baring Emerging Europe |
ImmuPharma PLC and Baring Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuPharma PLC and Baring Emerging
The main advantage of trading using opposite ImmuPharma PLC and Baring Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuPharma PLC position performs unexpectedly, Baring Emerging 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 Baring Emerging will offset losses from the drop in Baring Emerging's long position.| ImmuPharma PLC vs. Samsung Electronics Co | ImmuPharma PLC vs. Samsung Electronics Co | ImmuPharma PLC vs. Toyota Motor Corp | ImmuPharma PLC vs. Reliance Industries Ltd |
| Baring Emerging vs. Catalyst Media Group | Baring Emerging vs. Oncimmune Holdings plc | Baring Emerging vs. Invesco Health Care | Baring Emerging vs. Coor Service Management |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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