Correlation Between Imugene and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both Imugene and Ramsay Health 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 Ramsay Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imugene and Ramsay Health Care, you can compare the effects of market volatilities on Imugene and Ramsay Health 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 Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imugene and Ramsay Health.
Diversification Opportunities for Imugene and Ramsay Health
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Imugene and Ramsay is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Imugene and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care 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 Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of Imugene i.e., Imugene and Ramsay Health go up and down completely randomly.
Pair Corralation between Imugene and Ramsay Health
Assuming the 90 days trading horizon Imugene is expected to generate 2.96 times more return on investment than Ramsay Health. However, Imugene is 2.96 times more volatile than Ramsay Health Care. It trades about 0.12 of its potential returns per unit of risk. Ramsay Health Care is currently generating about -0.22 per unit of risk. If you would invest 3.70 in Imugene on October 24, 2024 and sell it today you would earn a total of 0.30 from holding Imugene or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imugene vs. Ramsay Health Care
Performance |
| Timeline |
| Imugene |
| Ramsay Health Care |
Imugene and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imugene and Ramsay Health
The main advantage of trading using opposite Imugene and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imugene position performs unexpectedly, Ramsay Health 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 Ramsay Health will offset losses from the drop in Ramsay Health's long position.| Imugene vs. Ramsay Health Care | Imugene vs. Hotel Property Investments | Imugene vs. Oceania Healthcare | Imugene vs. Platinum Asia Investments |
| Ramsay Health vs. FireFly Metals | Ramsay Health vs. Queste Communications | Ramsay Health vs. Cosmo Metals | Ramsay Health vs. Ainsworth Game Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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