Correlation Between Ion Beam and Immolease Trust

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

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

Diversification Opportunities for Ion Beam and Immolease Trust

-0.24

Correlation Coefficient

Ion Beam  Immolease Trust

Very good diversification

The 3 months correlation between Ion and Immolease is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications 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 Ion Beam 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 Ion Beam Applications 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 Ion Beam i.e., Ion Beam and Immolease Trust go up and down completely randomly.

Pair Corralation between Ion Beam and Immolease Trust

Assuming the 90 days trading horizon Ion Beam Applications is expected to under-perform the Immolease Trust. In addition to that, Ion Beam is 1.16 times more volatile than Immolease Trust NV. It trades about -0.11 of its total potential returns per unit of risk. Immolease Trust NV is currently generating about -0.02 per unit of volatility. 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

Ion Beam Applications  vs.  Immolease Trust NV

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.

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.

Pair Trading with Ion Beam and Immolease Trust

The main advantage of trading using opposite Ion Beam and Immolease Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam 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 Ion Beam Applications 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.