Correlation Between ImmuPharma PLC and Beeks Trading

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

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

Diversification Opportunities for ImmuPharma PLC and Beeks Trading

-0.03

Correlation Coefficient

ImmuPharma PLC  Beeks Trading

Good diversification

The 3 months correlation between ImmuPharma and Beeks is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding ImmuPharma PLC and Beeks Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beeks Trading and ImmuPharma PLC 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 ImmuPharma PLC are associated (or correlated) with Beeks Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beeks Trading has no effect on the direction of ImmuPharma PLC i.e., ImmuPharma PLC and Beeks Trading go up and down completely randomly.

Pair Corralation between ImmuPharma PLC and Beeks Trading

Assuming the 90 days trading horizon ImmuPharma PLC is expected to under-perform the Beeks Trading. In addition to that, ImmuPharma PLC is 2.35 times more volatile than Beeks Trading. It trades about -0.19 of its total potential returns per unit of risk. Beeks Trading is currently generating about 0.0 per unit of volatility. If you would invest  28,600  in Beeks Trading on December 4, 2024 and sell it today you would lose (400.00) from holding Beeks Trading or give up 1.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

ImmuPharma PLC  vs.  Beeks Trading

ImmuPharma PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ImmuPharma PLC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, ImmuPharma PLC exhibited solid returns over the last few months and may actually be approaching a breakup point.

Beeks Trading

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Beeks Trading are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Beeks Trading is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ImmuPharma PLC and Beeks Trading

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

The idea behind ImmuPharma PLC and Beeks Trading 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.