Correlation Between Cardio Diagnostics and Immutep

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

By analyzing existing cross correlation between Cardio Diagnostics Holdings and Immutep Ltd ADR, you can compare the effects of market volatilities on Cardio Diagnostics and Immutep 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 Cardio Diagnostics with a short position of Immutep. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardio Diagnostics and Immutep.

Diversification Opportunities for Cardio Diagnostics and Immutep

0.65

Correlation Coefficient

Cardio Diagnostics  Immutep

Poor diversification

The 3 months correlation between Cardio and Immutep is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cardio Diagnostics Holdings and Immutep Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutep Ltd ADR and Cardio Diagnostics 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 Cardio Diagnostics Holdings are associated (or correlated) with Immutep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutep Ltd ADR has no effect on the direction of Cardio Diagnostics i.e., Cardio Diagnostics and Immutep go up and down completely randomly.

Pair Corralation between Cardio Diagnostics and Immutep

Given the investment horizon of 90 days Cardio Diagnostics Holdings is expected to under-perform the Immutep. In addition to that, Cardio Diagnostics is 3.74 times more volatile than Immutep Ltd ADR. It trades about -0.1 of its total potential returns per unit of risk. Immutep Ltd ADR is currently generating about -0.07 per unit of volatility. If you would invest  208.00  in Immutep Ltd ADR on December 28, 2024 and sell it today you would lose (22.00) from holding Immutep Ltd ADR or give up 10.58% of portfolio value over 90 days.

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

Cardio Diagnostics Holdings  vs.  Immutep Ltd ADR

Cardio Diagnostics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cardio Diagnostics Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Immutep Ltd ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Immutep Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's primary indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Cardio Diagnostics and Immutep

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

The idea behind Cardio Diagnostics Holdings and Immutep Ltd ADR 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.