Correlation Between Athelney Trust and ImmuPharma PLC

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

By analyzing existing cross correlation between Athelney Trust plc and ImmuPharma PLC, you can compare the effects of market volatilities on Athelney Trust 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 Athelney Trust with a short position of ImmuPharma PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athelney Trust and ImmuPharma PLC.

Diversification Opportunities for Athelney Trust and ImmuPharma PLC

-0.38

Correlation Coefficient

Athelney Trust  ImmuPharma PLC

Very good diversification

The 3 months correlation between Athelney and ImmuPharma is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Athelney Trust plc and ImmuPharma PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuPharma PLC and Athelney Trust 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 Athelney Trust 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 Athelney Trust i.e., Athelney Trust and ImmuPharma PLC go up and down completely randomly.

Pair Corralation between Athelney Trust and ImmuPharma PLC

Assuming the 90 days trading horizon Athelney Trust plc is expected to generate 0.23 times more return on investment than ImmuPharma PLC. However, Athelney Trust plc is 4.39 times less risky than ImmuPharma PLC. It trades about -0.08 of its potential returns per unit of risk. ImmuPharma PLC is currently generating about -0.11 per unit of risk. If you would invest  18,500  in Athelney Trust plc on September 23, 2024 and sell it today you would lose (1,000.00) from holding Athelney Trust plc or give up 5.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

Athelney Trust plc  vs.  ImmuPharma PLC

Athelney Trust plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Athelney Trust plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Athelney Trust is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

ImmuPharma PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ImmuPharma PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Athelney Trust and ImmuPharma PLC

The main advantage of trading using opposite Athelney Trust and ImmuPharma PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athelney Trust 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.

The idea behind Athelney Trust plc and ImmuPharma 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.