Correlation Between Vimian Group and Immunovia Publ
Can any of the company-specific risk be diversified away by investing in both Vimian Group and Immunovia Publ 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 Vimian Group and Immunovia Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vimian Group AB and Immunovia publ AB, you can compare the effects of market volatilities on Vimian Group and Immunovia Publ 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 Vimian Group with a short position of Immunovia Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vimian Group and Immunovia Publ.
Diversification Opportunities for Vimian Group and Immunovia Publ
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vimian and Immunovia is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Vimian Group AB and Immunovia publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunovia publ AB and Vimian Group 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 Vimian Group AB are associated (or correlated) with Immunovia Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunovia publ AB has no effect on the direction of Vimian Group i.e., Vimian Group and Immunovia Publ go up and down completely randomly.
Pair Corralation between Vimian Group and Immunovia Publ
Assuming the 90 days trading horizon Vimian Group is expected to generate 21.24 times less return on investment than Immunovia Publ. But when comparing it to its historical volatility, Vimian Group AB is 4.51 times less risky than Immunovia Publ. It trades about 0.05 of its potential returns per unit of risk. Immunovia publ AB is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 59.00 in Immunovia publ AB on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Immunovia publ AB or generate 44.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vimian Group AB vs. Immunovia publ AB
Performance |
| Timeline |
| Vimian Group AB |
| Immunovia publ AB |
Vimian Group and Immunovia Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vimian Group and Immunovia Publ
The main advantage of trading using opposite Vimian Group and Immunovia Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vimian Group position performs unexpectedly, Immunovia Publ 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 Immunovia Publ will offset losses from the drop in Immunovia Publ's long position.| Vimian Group vs. Swedencare publ AB | Vimian Group vs. Beijer Ref AB | Vimian Group vs. Troax Group AB | Vimian Group vs. Cint Group AB |
| Immunovia Publ vs. ADDvise Group B | Immunovia Publ vs. Hanza AB | Immunovia Publ vs. Awardit AB | Immunovia Publ vs. Doxa AB |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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