Correlation Between Viva Leisure and Imugene
Can any of the company-specific risk be diversified away by investing in both Viva Leisure 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 Viva Leisure and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viva Leisure and Imugene, you can compare the effects of market volatilities on Viva Leisure 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 Viva Leisure with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viva Leisure and Imugene.
Diversification Opportunities for Viva Leisure and Imugene
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Viva and Imugene is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Viva Leisure and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Viva Leisure 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 Viva Leisure 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 Viva Leisure i.e., Viva Leisure and Imugene go up and down completely randomly.
Pair Corralation between Viva Leisure and Imugene
Assuming the 90 days trading horizon Viva Leisure is expected to generate 0.42 times more return on investment than Imugene. However, Viva Leisure is 2.38 times less risky than Imugene. It trades about 0.04 of its potential returns per unit of risk. Imugene is currently generating about -0.03 per unit of risk. If you would invest 111.00 in Viva Leisure on September 12, 2024 and sell it today you would earn a total of 34.00 from holding Viva Leisure or generate 30.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viva Leisure vs. Imugene
Performance |
| Timeline |
| Viva Leisure |
| Imugene |
Viva Leisure and Imugene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viva Leisure and Imugene
The main advantage of trading using opposite Viva Leisure and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viva Leisure 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.| Viva Leisure vs. Falcon Metals | Viva Leisure vs. Alternative Investment Trust | Viva Leisure vs. Patriot Battery Metals | Viva Leisure vs. Group 6 Metals |
| Imugene vs. Clime Investment Management | Imugene vs. Viva Leisure | Imugene vs. Kip McGrath Education | Imugene vs. Saferoads Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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