Correlation Between XLMedia PLC and ImmuPharma PLC
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC and ImmuPharma PLC 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 XLMedia PLC and ImmuPharma PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and ImmuPharma PLC, you can compare the effects of market volatilities on XLMedia PLC and ImmuPharma PLC 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 XLMedia PLC with a short position of ImmuPharma PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and ImmuPharma PLC.
Diversification Opportunities for XLMedia PLC and ImmuPharma PLC
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between XLMedia and ImmuPharma is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and ImmuPharma PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuPharma PLC and XLMedia PLC 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 XLMedia PLC are associated (or correlated) with ImmuPharma PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuPharma PLC has no effect on the direction of XLMedia PLC i.e., XLMedia PLC and ImmuPharma PLC go up and down completely randomly.
Pair Corralation between XLMedia PLC and ImmuPharma PLC
Assuming the 90 days trading horizon XLMedia PLC is expected to under-perform the ImmuPharma PLC. But the stock apears to be less risky and, when comparing its historical volatility, XLMedia PLC is 1.03 times less risky than ImmuPharma PLC. The stock trades about -0.18 of its potential returns per unit of risk. The ImmuPharma PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 117.00 in ImmuPharma PLC on October 10, 2024 and sell it today you would earn a total of 3.00 from holding ImmuPharma PLC or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. ImmuPharma PLC
Performance |
| Timeline |
| XLMedia PLC |
| ImmuPharma PLC |
XLMedia PLC and ImmuPharma PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and ImmuPharma PLC
The main advantage of trading using opposite XLMedia PLC and ImmuPharma PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC position performs unexpectedly, ImmuPharma PLC 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 ImmuPharma PLC will offset losses from the drop in ImmuPharma PLC's long position.| XLMedia PLC vs. McEwen Mining | XLMedia PLC vs. European Metals Holdings | XLMedia PLC vs. Axway Software SA | XLMedia PLC vs. Wheaton Precious Metals |
| ImmuPharma PLC vs. Spirent Communications plc | ImmuPharma PLC vs. Batm Advanced Communications | ImmuPharma PLC vs. Indutrade AB | ImmuPharma PLC vs. Aptitude Software 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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