Correlation Between Immutep and ChitogenX

Can any of the company-specific risk be diversified away by investing in both Immutep and ChitogenX 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 Immutep and ChitogenX into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Immutep Ltd ADR and ChitogenX, you can compare the effects of market volatilities on Immutep and ChitogenX 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 Immutep with a short position of ChitogenX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immutep and ChitogenX.

Diversification Opportunities for Immutep and ChitogenX

0.8

Correlation Coefficient

Immutep  ChitogenX

Very poor diversification

The 3 months correlation between Immutep and ChitogenX is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Immutep Ltd ADR and ChitogenX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChitogenX and Immutep 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 Immutep Ltd ADR are associated (or correlated) with ChitogenX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChitogenX has no effect on the direction of Immutep i.e., Immutep and ChitogenX go up and down completely randomly.

Pair Corralation between Immutep and ChitogenX

Given the investment horizon of 90 days Immutep Ltd ADR is expected to generate 5.87 times more return on investment than ChitogenX. However, Immutep is 5.87 times more volatile than ChitogenX. It trades about 0.14 of its potential returns per unit of risk. ChitogenX is currently generating about -0.12 per unit of risk. If you would invest  182.00  in Immutep Ltd ADR on September 2, 2024 and sell it today you would earn a total of  21.00  from holding Immutep Ltd ADR or generate 11.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.45%
Values	Daily Returns

Immutep Ltd ADR  vs.  ChitogenX

Immutep Ltd ADR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immutep Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

ChitogenX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ChitogenX has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Immutep and ChitogenX

The main advantage of trading using opposite Immutep and ChitogenX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immutep position performs unexpectedly, ChitogenX 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 ChitogenX will offset losses from the drop in ChitogenX's long position.

The idea behind Immutep Ltd ADR and ChitogenX pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.