Correlation Between Immutep and Molecular Partners

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

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

Diversification Opportunities for Immutep and Molecular Partners

-0.54

Correlation Coefficient

Immutep  Molecular Partners

Excellent diversification

The 3 months correlation between Immutep and Molecular is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Immutep Ltd ADR and Molecular Partners AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molecular Partners and Immutep 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 Immutep Ltd ADR are associated (or correlated) with Molecular Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molecular Partners has no effect on the direction of Immutep i.e., Immutep and Molecular Partners go up and down completely randomly.

Pair Corralation between Immutep and Molecular Partners

Given the investment horizon of 90 days Immutep Ltd ADR is expected to generate 1.18 times more return on investment than Molecular Partners. However, Immutep is 1.18 times more volatile than Molecular Partners AG. It trades about 0.12 of its potential returns per unit of risk. Molecular Partners AG is currently generating about -0.14 per unit of risk. If you would invest  183.00  in Immutep Ltd ADR on October 7, 2024 and sell it today you would earn a total of  35.00  from holding Immutep Ltd ADR or generate 19.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Immutep Ltd ADR  vs.  Molecular Partners AG

Immutep Ltd ADR

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Immutep Ltd ADR are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain primary indicators, Immutep may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Molecular Partners

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Molecular Partners AG are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, Molecular Partners displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Immutep and Molecular Partners

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

The idea behind Immutep Ltd ADR and Molecular Partners AG 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.