Correlation Between BTC Health and Imugene

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

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

Diversification Opportunities for BTC Health and Imugene

0.38

Correlation Coefficient

BTC Health  Imugene

Weak diversification

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

Pair Corralation between BTC Health and Imugene

Assuming the 90 days trading horizon BTC Health Limited is expected to generate 1.8 times more return on investment than Imugene. However, BTC Health is 1.8 times more volatile than Imugene. It trades about 0.02 of its potential returns per unit of risk. Imugene is currently generating about -0.01 per unit of risk. If you would invest  7.30  in BTC Health Limited on December 28, 2024 and sell it today you would lose (0.80) from holding BTC Health Limited or give up 10.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

BTC Health Limited  vs.  Imugene

BTC Health Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BTC Health Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, BTC Health may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Imugene

Risk-Adjusted Performance

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 comparatively stable basic indicators, Imugene 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 BTC Health and Imugene

The main advantage of trading using opposite BTC Health and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTC Health 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 BTC Health Limited 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.

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 CEOs Directory module to screen CEOs from public companies around the world.