Correlation Between Sky Metals and Imugene
Can any of the company-specific risk be diversified away by investing in both Sky 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 Sky Metals and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sky Metals and Imugene, you can compare the effects of market volatilities on Sky 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 Sky Metals with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sky Metals and Imugene.
Diversification Opportunities for Sky Metals and Imugene
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sky and Imugene is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sky Metals and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Sky 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 Sky 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 Sky Metals i.e., Sky Metals and Imugene go up and down completely randomly.
Pair Corralation between Sky Metals and Imugene
Assuming the 90 days trading horizon Sky Metals is expected to generate 1.01 times more return on investment than Imugene. However, Sky Metals is 1.01 times more volatile than Imugene. It trades about 0.03 of its potential returns per unit of risk. Imugene is currently generating about -0.03 per unit of risk. If you would invest 5.00 in Sky Metals on August 30, 2024 and sell it today you would earn a total of 0.30 from holding Sky Metals or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.79% |
| Values | Daily Returns |
Sky Metals vs. Imugene
Performance |
| Timeline |
| Sky Metals |
| Imugene |
Sky Metals and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sky Metals and Imugene
The main advantage of trading using opposite Sky Metals and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sky 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.| Sky Metals vs. Northern Star Resources | Sky Metals vs. Evolution Mining | Sky Metals vs. Bluescope Steel | Sky Metals vs. Sandfire Resources NL |
| Imugene vs. Westpac Banking | Imugene vs. Hutchison Telecommunications | Imugene vs. Kkr Credit Income | 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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