Correlation Between Imugene and Cooper Metals
Can any of the company-specific risk be diversified away by investing in both Imugene and Cooper Metals 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 Cooper Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imugene and Cooper Metals, you can compare the effects of market volatilities on Imugene and Cooper Metals 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 Cooper Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imugene and Cooper Metals.
Diversification Opportunities for Imugene and Cooper Metals
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Imugene and Cooper is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Imugene and Cooper Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Metals 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 Cooper Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Metals has no effect on the direction of Imugene i.e., Imugene and Cooper Metals go up and down completely randomly.
Pair Corralation between Imugene and Cooper Metals
Assuming the 90 days trading horizon Imugene is expected to under-perform the Cooper Metals. But the stock apears to be less risky and, when comparing its historical volatility, Imugene is 1.54 times less risky than Cooper Metals. The stock trades about -0.02 of its potential returns per unit of risk. The Cooper Metals is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Cooper Metals on August 26, 2024 and sell it today you would lose (9.10) from holding Cooper Metals or give up 65.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imugene vs. Cooper Metals
Performance |
| Timeline |
| Imugene |
| Cooper Metals |
Imugene and Cooper Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imugene and Cooper Metals
The main advantage of trading using opposite Imugene and Cooper Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imugene position performs unexpectedly, Cooper Metals 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 Cooper Metals will offset losses from the drop in Cooper Metals' long position.| Imugene vs. Super Retail Group | Imugene vs. Sky Metals | Imugene vs. Charter Hall Retail | Imugene vs. Aurelia Metals |
| Cooper Metals vs. Stelar Metals | Cooper Metals vs. DY6 Metals | Cooper Metals vs. Dicker Data | Cooper Metals vs. Strickland 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |