Correlation Between Immunovia Publ and IAR Systems
Can any of the company-specific risk be diversified away by investing in both Immunovia Publ and IAR Systems 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 Immunovia Publ and IAR Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immunovia publ AB and IAR Systems Group, you can compare the effects of market volatilities on Immunovia Publ and IAR Systems 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 Immunovia Publ with a short position of IAR Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immunovia Publ and IAR Systems.
Diversification Opportunities for Immunovia Publ and IAR Systems
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Immunovia and IAR is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Immunovia publ AB and IAR Systems Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAR Systems Group and Immunovia Publ 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 Immunovia publ AB are associated (or correlated) with IAR Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAR Systems Group has no effect on the direction of Immunovia Publ i.e., Immunovia Publ and IAR Systems go up and down completely randomly.
Pair Corralation between Immunovia Publ and IAR Systems
Assuming the 90 days trading horizon Immunovia publ AB is expected to generate 6.4 times more return on investment than IAR Systems. However, Immunovia Publ is 6.4 times more volatile than IAR Systems Group. It trades about 0.04 of its potential returns per unit of risk. IAR Systems Group is currently generating about 0.07 per unit of risk. If you would invest 198.00 in Immunovia publ AB on September 4, 2024 and sell it today you would lose (110.00) from holding Immunovia publ AB or give up 55.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immunovia publ AB vs. IAR Systems Group
Performance |
| Timeline |
| Immunovia publ AB |
| IAR Systems Group |
Immunovia Publ and IAR Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immunovia Publ and IAR Systems
The main advantage of trading using opposite Immunovia Publ and IAR Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immunovia Publ position performs unexpectedly, IAR Systems 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 IAR Systems will offset losses from the drop in IAR Systems' long position.| Immunovia Publ vs. ADDvise Group B | Immunovia Publ vs. Hanza AB | Immunovia Publ vs. Awardit AB | Immunovia Publ vs. Doxa AB |
| IAR Systems vs. CellaVision AB | IAR Systems vs. HMS Networks AB | IAR Systems vs. Enea AB | IAR Systems vs. Know IT AB |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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