Correlation Between Imugene and Ausquest
Can any of the company-specific risk be diversified away by investing in both Imugene and Ausquest 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 Imugene and Ausquest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imugene and Ausquest, you can compare the effects of market volatilities on Imugene and Ausquest 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 Imugene with a short position of Ausquest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imugene and Ausquest.
Diversification Opportunities for Imugene and Ausquest
Very good diversification
The 3 months correlation between Imugene and Ausquest is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Imugene and Ausquest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ausquest and Imugene 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 Imugene are associated (or correlated) with Ausquest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ausquest has no effect on the direction of Imugene i.e., Imugene and Ausquest go up and down completely randomly.
Pair Corralation between Imugene and Ausquest
Assuming the 90 days trading horizon Imugene is expected to under-perform the Ausquest. But the stock apears to be less risky and, when comparing its historical volatility, Imugene is 1.6 times less risky than Ausquest. The stock trades about -0.05 of its potential returns per unit of risk. The Ausquest is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1.10 in Ausquest on October 22, 2024 and sell it today you would lose (0.30) from holding Ausquest or give up 27.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imugene vs. Ausquest
Performance |
| Timeline |
| Imugene |
| Ausquest |
Imugene and Ausquest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imugene and Ausquest
The main advantage of trading using opposite Imugene and Ausquest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imugene position performs unexpectedly, Ausquest 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 Ausquest will offset losses from the drop in Ausquest's long position.| Imugene vs. National Australia Bank | Imugene vs. Insurance Australia Group | Imugene vs. Perpetual Credit Income | Imugene vs. Macquarie Technology Group |
| Ausquest vs. BSP Financial Group | Ausquest vs. Latitude Financial Services | Ausquest vs. Liberty Financial Group | Ausquest vs. Centrex Metals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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