Correlation Between MRG Metals and Imugene
Can any of the company-specific risk be diversified away by investing in both MRG Metals 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 MRG Metals and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MRG Metals and Imugene, you can compare the effects of market volatilities on MRG Metals 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 MRG Metals with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRG Metals and Imugene.
Diversification Opportunities for MRG Metals and Imugene
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MRG and Imugene is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding MRG Metals and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and MRG Metals 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 MRG Metals 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 MRG Metals i.e., MRG Metals and Imugene go up and down completely randomly.
Pair Corralation between MRG Metals and Imugene
Assuming the 90 days trading horizon MRG Metals is expected to under-perform the Imugene. In addition to that, MRG Metals is 2.31 times more volatile than Imugene. It trades about -0.1 of its total potential returns per unit of risk. Imugene is currently generating about -0.15 per unit of volatility. If you would invest 4.40 in Imugene on September 3, 2024 and sell it today you would lose (0.60) from holding Imugene or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MRG Metals vs. Imugene
Performance |
| Timeline |
| MRG Metals |
| Imugene |
MRG Metals and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRG Metals and Imugene
The main advantage of trading using opposite MRG Metals and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRG Metals 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.| MRG Metals vs. Northern Star Resources | MRG Metals vs. Evolution Mining | MRG Metals vs. Bluescope Steel | MRG Metals vs. Aneka Tambang Tbk |
| Imugene vs. TTG Fintech | Imugene vs. Land Homes Group | Imugene vs. Regis Healthcare | Imugene vs. Horseshoe 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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