Correlation Between Imugene and VanEck FTSE

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

By analyzing existing cross correlation between Imugene and VanEck FTSE Global, you can compare the effects of market volatilities on Imugene and VanEck FTSE 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 VanEck FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imugene and VanEck FTSE.

Diversification Opportunities for Imugene and VanEck FTSE

-0.6

Correlation Coefficient

Imugene  VanEck FTSE

Excellent diversification

The 3 months correlation between Imugene and VanEck is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Imugene and VanEck FTSE Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck FTSE Global 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 VanEck FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck FTSE Global has no effect on the direction of Imugene i.e., Imugene and VanEck FTSE go up and down completely randomly.

Pair Corralation between Imugene and VanEck FTSE

Assuming the 90 days trading horizon Imugene is expected to under-perform the VanEck FTSE. In addition to that, Imugene is 5.39 times more volatile than VanEck FTSE Global. It trades about -0.19 of its total potential returns per unit of risk. VanEck FTSE Global is currently generating about 0.12 per unit of volatility. If you would invest  2,174  in VanEck FTSE Global on September 3, 2024 and sell it today you would earn a total of  114.00  from holding VanEck FTSE Global or generate 5.24% return on investment over 90 days.

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

Imugene  vs.  VanEck FTSE Global

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.

VanEck FTSE Global

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VanEck FTSE Global are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, VanEck FTSE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Imugene and VanEck FTSE

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

The idea behind Imugene and VanEck FTSE Global 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.