Correlation Between Stelar Metals and Imugene
Can any of the company-specific risk be diversified away by investing in both Stelar 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 Stelar Metals and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stelar Metals and Imugene, you can compare the effects of market volatilities on Stelar 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 Stelar Metals with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stelar Metals and Imugene.
Diversification Opportunities for Stelar Metals and Imugene
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stelar and Imugene is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Stelar Metals and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Stelar 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 Stelar 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 Stelar Metals i.e., Stelar Metals and Imugene go up and down completely randomly.
Pair Corralation between Stelar Metals and Imugene
Assuming the 90 days trading horizon Stelar Metals is expected to generate 1.11 times more return on investment than Imugene. However, Stelar Metals is 1.11 times more volatile than Imugene. It trades about -0.02 of its potential returns per unit of risk. Imugene is currently generating about -0.07 per unit of risk. If you would invest 7.60 in Stelar Metals on September 14, 2024 and sell it today you would lose (0.80) from holding Stelar Metals or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stelar Metals vs. Imugene
Performance |
| Timeline |
| Stelar Metals |
| Imugene |
Stelar Metals and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stelar Metals and Imugene
The main advantage of trading using opposite Stelar Metals and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stelar 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.| Stelar Metals vs. Northern Star Resources | Stelar Metals vs. Evolution Mining | Stelar Metals vs. Bluescope Steel | Stelar Metals vs. Sandfire Resources NL |
| Imugene vs. MetalsGrove Mining | Imugene vs. Stelar Metals | Imugene vs. Charter Hall Retail | Imugene vs. Sky 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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