Correlation Between Utah Medical and Immuron
Can any of the company-specific risk be diversified away by investing in both Utah Medical 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 Utah Medical and Immuron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Utah Medical Products and Immuron Ltd ADR, you can compare the effects of market volatilities on Utah Medical 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 Utah Medical with a short position of Immuron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utah Medical and Immuron.
Diversification Opportunities for Utah Medical and Immuron
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Utah and Immuron is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Utah Medical Products and Immuron Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron Ltd ADR and Utah Medical 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 Utah Medical Products 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 Ltd ADR has no effect on the direction of Utah Medical i.e., Utah Medical and Immuron go up and down completely randomly.
Pair Corralation between Utah Medical and Immuron
Given the investment horizon of 90 days Utah Medical is expected to generate 6.46 times less return on investment than Immuron. But when comparing it to its historical volatility, Utah Medical Products is 7.34 times less risky than Immuron. It trades about 0.11 of its potential returns per unit of risk. Immuron Ltd ADR is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 199.00 in Immuron Ltd ADR on October 23, 2024 and sell it today you would earn a total of 16.00 from holding Immuron Ltd ADR or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Utah Medical Products vs. Immuron Ltd ADR
Performance |
| Timeline |
| Utah Medical Products |
| Immuron Ltd ADR |
Utah Medical and Immuron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Utah Medical and Immuron
The main advantage of trading using opposite Utah Medical and Immuron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utah Medical 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.| Utah Medical vs. Cigna Corp | Utah Medical vs. Definitive Healthcare Corp | Utah Medical vs. Edwards Lifesciences Corp | Utah Medical vs. Guardant Health |
| Immuron vs. Tscan Therapeutics | Immuron vs. In8bio Inc | Immuron vs. Phio Pharmaceuticals Corp | Immuron vs. Immix Biopharma |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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