Correlation Between Exmar NV and Immolease Trust

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

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

Diversification Opportunities for Exmar NV and Immolease Trust

-0.1

Correlation Coefficient

Exmar NV  Immolease Trust

Good diversification

The 3 months correlation between Exmar and Immolease is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Exmar NV and Immolease Trust NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immolease Trust NV and Exmar NV 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 Exmar NV are associated (or correlated) with Immolease Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immolease Trust NV has no effect on the direction of Exmar NV i.e., Exmar NV and Immolease Trust go up and down completely randomly.

Pair Corralation between Exmar NV and Immolease Trust

Assuming the 90 days trading horizon Exmar NV is expected to generate 2.88 times more return on investment than Immolease Trust. However, Exmar NV is 2.88 times more volatile than Immolease Trust NV. It trades about 0.12 of its potential returns per unit of risk. Immolease Trust NV is currently generating about -0.17 per unit of risk. If you would invest  865.00  in Exmar NV on September 13, 2024 and sell it today you would earn a total of  269.00  from holding Exmar NV or generate 31.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	63.08%
Values	Daily Returns

Exmar NV  vs.  Immolease Trust NV

Exmar NV

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Exmar NV are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, Exmar NV reported solid returns over the last few months and may actually be approaching a breakup point.

Immolease Trust NV

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Exmar NV and Immolease Trust

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

The idea behind Exmar NV and Immolease Trust NV 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.