Correlation Between Imugene and Adriatic Metals

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

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

Diversification Opportunities for Imugene and Adriatic Metals

-0.74

Correlation Coefficient

Imugene  Adriatic Metals

Pay attention - limited upside

The 3 months correlation between Imugene and Adriatic is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Imugene and Adriatic Metals Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adriatic Metals Plc and Imugene 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 Imugene are associated (or correlated) with Adriatic Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adriatic Metals Plc has no effect on the direction of Imugene i.e., Imugene and Adriatic Metals go up and down completely randomly.

Pair Corralation between Imugene and Adriatic Metals

Assuming the 90 days trading horizon Imugene is expected to under-perform the Adriatic Metals. In addition to that, Imugene is 1.65 times more volatile than Adriatic Metals Plc. It trades about -0.04 of its total potential returns per unit of risk. Adriatic Metals Plc is currently generating about 0.03 per unit of volatility. If you would invest  317.00  in Adriatic Metals Plc on September 3, 2024 and sell it today you would earn a total of  100.00  from holding Adriatic Metals Plc or generate 31.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Imugene  vs.  Adriatic Metals Plc

Imugene

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Imugene has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Adriatic Metals Plc

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Adriatic Metals Plc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Adriatic Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Imugene and Adriatic Metals

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

The idea behind Imugene and Adriatic Metals Plc 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.