Correlation Between Molecular Templates and Immutep

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Can any of the company-specific risk be diversified away by investing in both Molecular Templates and Immutep 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 Molecular Templates and Immutep into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molecular Templates and Immutep Ltd ADR, you can compare the effects of market volatilities on Molecular Templates and Immutep 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 Molecular Templates with a short position of Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molecular Templates and Immutep.

Diversification Opportunities for Molecular Templates and Immutep

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Molecular and Immutep is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Molecular Templates and Immutep Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep Ltd ADR and Molecular Templates 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 Molecular Templates are associated (or correlated) with Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep Ltd ADR has no effect on the direction of Molecular Templates i.e., Molecular Templates and Immutep go up and down completely randomly.

Pair Corralation between Molecular Templates and Immutep

Given the investment horizon of 90 days Molecular Templates is expected to generate 4.89 times more return on investment than Immutep. However, Molecular Templates is 4.89 times more volatile than Immutep Ltd ADR. It trades about 0.01 of its potential returns per unit of risk. Immutep Ltd ADR is currently generating about 0.02 per unit of risk. If you would invest  50.00  in Molecular Templates on August 29, 2024 and sell it today you would lose (13.00) from holding Molecular Templates or give up 26.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Molecular Templates  vs.  Immutep Ltd ADR

 Performance 
       Timeline  
Molecular Templates 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Molecular Templates are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Molecular Templates displayed solid returns over the last few months and may actually be approaching a breakup point.
Immutep Ltd ADR 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Immutep Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Molecular Templates and Immutep Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Molecular Templates and Immutep

The main advantage of trading using opposite Molecular Templates and Immutep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molecular Templates position performs unexpectedly, Immutep 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 Immutep will offset losses from the drop in Immutep's long position.
The idea behind Molecular Templates and Immutep Ltd ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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