Correlation Between Land Homes and Imugene
Can any of the company-specific risk be diversified away by investing in both Land Homes 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 Land Homes and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Land Homes Group and Imugene, you can compare the effects of market volatilities on Land Homes 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 Land Homes with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Land Homes and Imugene.
Diversification Opportunities for Land Homes and Imugene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Land and Imugene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Land Homes Group and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Land Homes 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 Land Homes Group 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 Land Homes i.e., Land Homes and Imugene go up and down completely randomly.
Pair Corralation between Land Homes and Imugene
Assuming the 90 days trading horizon Land Homes Group is expected to under-perform the Imugene. But the stock apears to be less risky and, when comparing its historical volatility, Land Homes Group is 4.84 times less risky than Imugene. The stock trades about -0.1 of its potential returns per unit of risk. The Imugene is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Imugene on September 4, 2024 and sell it today you would lose (1.20) from holding Imugene or give up 24.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Land Homes Group vs. Imugene
Performance |
| Timeline |
| Land Homes Group |
| Imugene |
Land Homes and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Land Homes and Imugene
The main advantage of trading using opposite Land Homes and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Land Homes 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.| Land Homes vs. Scentre Group | Land Homes vs. Vicinity Centres Re | Land Homes vs. Charter Hall Retail | Land Homes vs. Cromwell Property Group |
| Imugene vs. Event Hospitality and | Imugene vs. oOhMedia | Imugene vs. Capitol Health | Imugene vs. Autosports Group |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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