Correlation Between Immutep and Scorpius Holdings

Can any of the company-specific risk be diversified away by investing in both Immutep and Scorpius Holdings 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 Scorpius Holdings 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 Scorpius Holdings, you can compare the effects of market volatilities on Immutep and Scorpius Holdings 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 Scorpius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immutep and Scorpius Holdings.

Diversification Opportunities for Immutep and Scorpius Holdings

0.69

Correlation Coefficient

Immutep  Scorpius Holdings

Poor diversification

The 3 months correlation between Immutep and Scorpius is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Immutep Ltd ADR and Scorpius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scorpius Holdings 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 Scorpius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scorpius Holdings has no effect on the direction of Immutep i.e., Immutep and Scorpius Holdings go up and down completely randomly.

Pair Corralation between Immutep and Scorpius Holdings

Given the investment horizon of 90 days Immutep Ltd ADR is expected to generate 0.2 times more return on investment than Scorpius Holdings. However, Immutep Ltd ADR is 5.08 times less risky than Scorpius Holdings. It trades about -0.02 of its potential returns per unit of risk. Scorpius Holdings is currently generating about -0.03 per unit of risk. If you would invest  198.00  in Immutep Ltd ADR on December 22, 2024 and sell it today you would lose (10.00) from holding Immutep Ltd ADR or give up 5.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Immutep Ltd ADR  vs.  Scorpius Holdings

Immutep Ltd ADR

Risk-Adjusted Performance

Very Weak

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

Scorpius Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Scorpius Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Immutep and Scorpius Holdings

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

The idea behind Immutep Ltd ADR and Scorpius Holdings 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.