Correlation Between Bisalloy Steel and Imugene

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

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

Diversification Opportunities for Bisalloy Steel and Imugene

-0.9

Correlation Coefficient

Bisalloy Steel  Imugene

Pay attention - limited upside

The 3 months correlation between Bisalloy and Imugene is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Bisalloy Steel Group and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Bisalloy Steel 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 Bisalloy Steel Group are associated (or correlated) with Imugene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imugene has no effect on the direction of Bisalloy Steel i.e., Bisalloy Steel and Imugene go up and down completely randomly.

Pair Corralation between Bisalloy Steel and Imugene

Assuming the 90 days trading horizon Bisalloy Steel Group is expected to generate 0.65 times more return on investment than Imugene. However, Bisalloy Steel Group is 1.53 times less risky than Imugene. It trades about 0.09 of its potential returns per unit of risk. Imugene is currently generating about 0.0 per unit of risk. If you would invest  184.00  in Bisalloy Steel Group on October 4, 2024 and sell it today you would earn a total of  264.00  from holding Bisalloy Steel Group or generate 143.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	99.7%
Values	Daily Returns

Bisalloy Steel Group  vs.  Imugene

Bisalloy Steel Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bisalloy Steel Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Bisalloy Steel unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Bisalloy Steel and Imugene

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

The idea behind Bisalloy Steel Group and Imugene 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.