Correlation Between Immutep and Kane Biotech
Can any of the company-specific risk be diversified away by investing in both Immutep and Kane Biotech 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 Immutep and Kane Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immutep Ltd ADR and Kane Biotech, you can compare the effects of market volatilities on Immutep and Kane Biotech 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 Immutep with a short position of Kane Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immutep and Kane Biotech.
Diversification Opportunities for Immutep and Kane Biotech
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Immutep and Kane is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Immutep Ltd ADR and Kane Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kane Biotech and Immutep 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 Immutep Ltd ADR are associated (or correlated) with Kane Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kane Biotech has no effect on the direction of Immutep i.e., Immutep and Kane Biotech go up and down completely randomly.
Pair Corralation between Immutep and Kane Biotech
Given the investment horizon of 90 days Immutep is expected to generate 1.71 times less return on investment than Kane Biotech. But when comparing it to its historical volatility, Immutep Ltd ADR is 1.17 times less risky than Kane Biotech. It trades about 0.02 of its potential returns per unit of risk. Kane Biotech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7.50 in Kane Biotech on September 3, 2024 and sell it today you would earn a total of 1.18 from holding Kane Biotech or generate 15.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Immutep Ltd ADR vs. Kane Biotech
Performance |
| Timeline |
| Immutep Ltd ADR |
| Kane Biotech |
Immutep and Kane Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immutep and Kane Biotech
The main advantage of trading using opposite Immutep and Kane Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immutep position performs unexpectedly, Kane Biotech 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 Kane Biotech will offset losses from the drop in Kane Biotech's long position.| Immutep vs. Ocean Biomedical | Immutep vs. Elevation Oncology | Immutep vs. Zura Bio Limited | Immutep vs. Cns Pharmaceuticals |
| Kane Biotech vs. Pharming Group NV | Kane Biotech vs. Health Sciences Gr | Kane Biotech vs. MedMira | Kane Biotech vs. Oxford Cannabinoid Technologies |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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