Correlation Between ImmuPharma PLC and LBG Media
Can any of the company-specific risk be diversified away by investing in both ImmuPharma PLC and LBG Media 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 LBG Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ImmuPharma PLC and LBG Media PLC, you can compare the effects of market volatilities on ImmuPharma PLC and LBG Media 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 LBG Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuPharma PLC and LBG Media.
Diversification Opportunities for ImmuPharma PLC and LBG Media
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ImmuPharma and LBG is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding ImmuPharma PLC and LBG Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBG Media 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 LBG Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBG Media PLC has no effect on the direction of ImmuPharma PLC i.e., ImmuPharma PLC and LBG Media go up and down completely randomly.
Pair Corralation between ImmuPharma PLC and LBG Media
Assuming the 90 days trading horizon ImmuPharma PLC is expected to generate 1.02 times less return on investment than LBG Media. In addition to that, ImmuPharma PLC is 2.27 times more volatile than LBG Media PLC. It trades about 0.01 of its total potential returns per unit of risk. LBG Media PLC is currently generating about 0.03 per unit of volatility. If you would invest 9,800 in LBG Media PLC on September 12, 2024 and sell it today you would earn a total of 2,000 from holding LBG Media PLC or generate 20.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ImmuPharma PLC vs. LBG Media PLC
Performance |
| Timeline |
| ImmuPharma PLC |
| LBG Media PLC |
ImmuPharma PLC and LBG Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuPharma PLC and LBG Media
The main advantage of trading using opposite ImmuPharma PLC and LBG Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuPharma PLC position performs unexpectedly, LBG Media 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 LBG Media will offset losses from the drop in LBG Media's long position.| ImmuPharma PLC vs. Cairo Communication SpA | ImmuPharma PLC vs. STMicroelectronics NV | ImmuPharma PLC vs. Gamma Communications PLC | ImmuPharma PLC vs. Kinnevik Investment AB |
| LBG Media vs. Bellevue Healthcare Trust | LBG Media vs. Optima Health plc | LBG Media vs. Worldwide Healthcare Trust | LBG Media vs. Naturhouse Health SA |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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