Correlation Between Jupiter Energy and Imugene
Can any of the company-specific risk be diversified away by investing in both Jupiter Energy and Imugene 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 Jupiter Energy and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jupiter Energy and Imugene, you can compare the effects of market volatilities on Jupiter Energy and Imugene 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 Jupiter Energy with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Energy and Imugene.
Diversification Opportunities for Jupiter Energy and Imugene
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jupiter and Imugene is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Energy and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Jupiter Energy 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 Jupiter Energy are associated (or correlated) with Imugene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imugene has no effect on the direction of Jupiter Energy i.e., Jupiter Energy and Imugene go up and down completely randomly.
Pair Corralation between Jupiter Energy and Imugene
Assuming the 90 days trading horizon Jupiter Energy is expected to generate 1.41 times more return on investment than Imugene. However, Jupiter Energy is 1.41 times more volatile than Imugene. It trades about 0.06 of its potential returns per unit of risk. Imugene is currently generating about -0.02 per unit of risk. If you would invest 1.90 in Jupiter Energy on August 26, 2024 and sell it today you would earn a total of 1.20 from holding Jupiter Energy or generate 63.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Energy vs. Imugene
Performance |
| Timeline |
| Jupiter Energy |
| Imugene |
Jupiter Energy and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Energy and Imugene
The main advantage of trading using opposite Jupiter Energy and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Energy position performs unexpectedly, Imugene 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 Imugene will offset losses from the drop in Imugene's long position.| Jupiter Energy vs. Westpac Banking | Jupiter Energy vs. ABACUS STORAGE KING | Jupiter Energy vs. Insurance Australia Group | Jupiter Energy vs. Origin Energy |
| Imugene vs. Super Retail Group | Imugene vs. Sky Metals | Imugene vs. Charter Hall Retail | Imugene vs. Aurelia 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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