Correlation Between ImmuPharma PLC and EasyJet PLC
Can any of the company-specific risk be diversified away by investing in both ImmuPharma PLC and EasyJet PLC 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 EasyJet PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuPharma PLC and EasyJet PLC, you can compare the effects of market volatilities on ImmuPharma PLC and EasyJet PLC 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 EasyJet PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuPharma PLC and EasyJet PLC.
Diversification Opportunities for ImmuPharma PLC and EasyJet PLC
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ImmuPharma and EasyJet is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding ImmuPharma PLC and EasyJet PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EasyJet PLC 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 EasyJet PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EasyJet PLC has no effect on the direction of ImmuPharma PLC i.e., ImmuPharma PLC and EasyJet PLC go up and down completely randomly.
Pair Corralation between ImmuPharma PLC and EasyJet PLC
Assuming the 90 days trading horizon ImmuPharma PLC is expected to under-perform the EasyJet PLC. In addition to that, ImmuPharma PLC is 2.0 times more volatile than EasyJet PLC. It trades about -0.09 of its total potential returns per unit of risk. EasyJet PLC is currently generating about 0.1 per unit of volatility. If you would invest 45,780 in EasyJet PLC on September 24, 2024 and sell it today you would earn a total of 11,380 from holding EasyJet PLC or generate 24.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuPharma PLC vs. EasyJet PLC
Performance |
| Timeline |
| ImmuPharma PLC |
| EasyJet PLC |
ImmuPharma PLC and EasyJet PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuPharma PLC and EasyJet PLC
The main advantage of trading using opposite ImmuPharma PLC and EasyJet PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuPharma PLC position performs unexpectedly, EasyJet PLC 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 EasyJet PLC will offset losses from the drop in EasyJet PLC's long position.| ImmuPharma PLC vs. Quadrise Plc | ImmuPharma PLC vs. Intuitive Investments Group | ImmuPharma PLC vs. European Metals Holdings | ImmuPharma PLC vs. Calculus VCT plc |
| EasyJet PLC vs. Quadrise Plc | EasyJet PLC vs. ImmuPharma PLC | EasyJet PLC vs. Intuitive Investments Group | EasyJet PLC vs. European Metals Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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