Correlation Between ImmuPharma PLC and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both ImmuPharma PLC and XLMedia 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 XLMedia 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 XLMedia PLC, you can compare the effects of market volatilities on ImmuPharma PLC and XLMedia 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 XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ImmuPharma PLC and XLMedia PLC.
Diversification Opportunities for ImmuPharma PLC and XLMedia PLC
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ImmuPharma and XLMedia is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ImmuPharma PLC and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of ImmuPharma PLC i.e., ImmuPharma PLC and XLMedia PLC go up and down completely randomly.
Pair Corralation between ImmuPharma PLC and XLMedia PLC
Assuming the 90 days trading horizon ImmuPharma PLC is expected to generate 22.23 times more return on investment than XLMedia PLC. However, ImmuPharma PLC is 22.23 times more volatile than XLMedia PLC. It trades about 0.26 of its potential returns per unit of risk. XLMedia PLC is currently generating about 0.32 per unit of risk. If you would invest 122.00 in ImmuPharma PLC on November 3, 2024 and sell it today you would earn a total of 398.00 from holding ImmuPharma PLC or generate 326.23% 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. XLMedia PLC
Performance |
| Timeline |
| ImmuPharma PLC |
| XLMedia PLC |
ImmuPharma PLC and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ImmuPharma PLC and XLMedia PLC
The main advantage of trading using opposite ImmuPharma PLC and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ImmuPharma PLC position performs unexpectedly, XLMedia 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| ImmuPharma PLC vs. Take Two Interactive Software | ImmuPharma PLC vs. International Biotechnology Trust | ImmuPharma PLC vs. Polar Capital Technology | ImmuPharma PLC vs. Cognizant Technology Solutions |
| XLMedia PLC vs. Software Circle plc | XLMedia PLC vs. Global Net Lease | XLMedia PLC vs. Teradata Corp | XLMedia PLC vs. Qurate Retail Series |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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