Correlation Between Immolease Trust and Ion Beam

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

By analyzing existing cross correlation between Immolease Trust NV and Ion Beam Applications, you can compare the effects of market volatilities on Immolease Trust and Ion Beam 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 Immolease Trust with a short position of Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immolease Trust and Ion Beam.

Diversification Opportunities for Immolease Trust and Ion Beam

-0.24

Correlation Coefficient

Immolease Trust  Ion Beam

Very good diversification

The 3 months correlation between Immolease and Ion is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Immolease Trust NV and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications and Immolease 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 Immolease Trust NV are associated (or correlated) with Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Immolease Trust i.e., Immolease Trust and Ion Beam go up and down completely randomly.

Pair Corralation between Immolease Trust and Ion Beam

Assuming the 90 days trading horizon Immolease Trust NV is expected to generate 0.86 times more return on investment than Ion Beam. However, Immolease Trust NV is 1.16 times less risky than Ion Beam. It trades about -0.02 of its potential returns per unit of risk. Ion Beam Applications is currently generating about -0.11 per unit of risk. If you would invest  10,800  in Immolease Trust NV on December 30, 2024 and sell it today you would lose (300.00) from holding Immolease Trust NV or give up 2.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	66.15%
Values	Daily Returns

Immolease Trust NV  vs.  Ion Beam Applications

Immolease Trust NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Immolease Trust NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Immolease Trust is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Ion Beam Applications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ion Beam Applications has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Immolease Trust and Ion Beam

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

The idea behind Immolease Trust NV and Ion Beam Applications 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.