Correlation Between Imugene and Collins Foods
Can any of the company-specific risk be diversified away by investing in both Imugene and Collins Foods 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 Collins Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imugene and Collins Foods, you can compare the effects of market volatilities on Imugene and Collins Foods 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 Collins Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imugene and Collins Foods.
Diversification Opportunities for Imugene and Collins Foods
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Imugene and Collins is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Imugene and Collins Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collins Foods 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 Collins Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collins Foods has no effect on the direction of Imugene i.e., Imugene and Collins Foods go up and down completely randomly.
Pair Corralation between Imugene and Collins Foods
Assuming the 90 days trading horizon Imugene is expected to under-perform the Collins Foods. In addition to that, Imugene is 2.71 times more volatile than Collins Foods. It trades about -0.03 of its total potential returns per unit of risk. Collins Foods is currently generating about 0.02 per unit of volatility. If you would invest 775.00 in Collins Foods on September 2, 2024 and sell it today you would earn a total of 84.00 from holding Collins Foods or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imugene vs. Collins Foods
Performance |
| Timeline |
| Imugene |
| Collins Foods |
Imugene and Collins Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imugene and Collins Foods
The main advantage of trading using opposite Imugene and Collins Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imugene position performs unexpectedly, Collins Foods 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 Collins Foods will offset losses from the drop in Collins Foods' long position.| Imugene vs. Bio Gene Technology | Imugene vs. Alto Metals | Imugene vs. Dug Technology | Imugene vs. Epsilon Healthcare |
| Collins Foods vs. iShares Global Healthcare | Collins Foods vs. Australian Dairy Farms | Collins Foods vs. Adriatic Metals Plc | Collins Foods vs. Australian Agricultural |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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