Correlation Between Singular Health and Immuron
Can any of the company-specific risk be diversified away by investing in both Singular Health and Immuron 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 Singular Health and Immuron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singular Health Group and Immuron, you can compare the effects of market volatilities on Singular Health and Immuron 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 Singular Health with a short position of Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singular Health and Immuron.
Diversification Opportunities for Singular Health and Immuron
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Singular and Immuron is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Singular Health Group and Immuron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron and Singular Health 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 Singular Health Group are associated (or correlated) with Immuron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuron has no effect on the direction of Singular Health i.e., Singular Health and Immuron go up and down completely randomly.
Pair Corralation between Singular Health and Immuron
Assuming the 90 days trading horizon Singular Health Group is expected to generate 2.47 times more return on investment than Immuron. However, Singular Health is 2.47 times more volatile than Immuron. It trades about 0.26 of its potential returns per unit of risk. Immuron is currently generating about 0.01 per unit of risk. If you would invest 8.70 in Singular Health Group on August 29, 2024 and sell it today you would earn a total of 3.30 from holding Singular Health Group or generate 37.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singular Health Group vs. Immuron
Performance |
| Timeline |
| Singular Health Group |
| Immuron |
Singular Health and Immuron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singular Health and Immuron
The main advantage of trading using opposite Singular Health and Immuron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singular Health position performs unexpectedly, Immuron 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 Immuron will offset losses from the drop in Immuron's long position.| Singular Health vs. Westpac Banking | Singular Health vs. Champion Iron | Singular Health vs. Ridley | Singular Health vs. Peel Mining |
| Immuron vs. Global Health | Immuron vs. EVE Health Group | Immuron vs. Hotel Property Investments | Immuron vs. Singular Health 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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