Correlation Between Imugene and Spacetalk
Can any of the company-specific risk be diversified away by investing in both Imugene and Spacetalk 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 Spacetalk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imugene and Spacetalk, you can compare the effects of market volatilities on Imugene and Spacetalk 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 Spacetalk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imugene and Spacetalk.
Diversification Opportunities for Imugene and Spacetalk
Almost no diversification
The 3 months correlation between Imugene and Spacetalk is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Imugene and Spacetalk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spacetalk 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 Spacetalk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spacetalk has no effect on the direction of Imugene i.e., Imugene and Spacetalk go up and down completely randomly.
Pair Corralation between Imugene and Spacetalk
Assuming the 90 days trading horizon Imugene is expected to under-perform the Spacetalk. But the stock apears to be less risky and, when comparing its historical volatility, Imugene is 1.86 times less risky than Spacetalk. The stock trades about -0.08 of its potential returns per unit of risk. The Spacetalk is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Spacetalk on September 20, 2024 and sell it today you would lose (1.00) from holding Spacetalk or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Imugene vs. Spacetalk
Performance |
| Timeline |
| Imugene |
| Spacetalk |
Imugene and Spacetalk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imugene and Spacetalk
The main advantage of trading using opposite Imugene and Spacetalk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imugene position performs unexpectedly, Spacetalk 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 Spacetalk will offset losses from the drop in Spacetalk's long position.| Imugene vs. Aneka Tambang Tbk | Imugene vs. Commonwealth Bank | Imugene vs. Commonwealth Bank of | Imugene vs. Australia and New |
| Spacetalk vs. Accent Resources NL | Spacetalk vs. Hutchison Telecommunications | Spacetalk vs. Energy Resources | Spacetalk vs. Pact Group Holdings |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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