Correlation Between Imugene and BSP Financial

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

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

Diversification Opportunities for Imugene and BSP Financial

-0.5

Correlation Coefficient

Imugene  BSP Financial

Very good diversification

The 3 months correlation between Imugene and BSP is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Imugene and BSP Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSP Financial Group and Imugene 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 Imugene are associated (or correlated) with BSP Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSP Financial Group has no effect on the direction of Imugene i.e., Imugene and BSP Financial go up and down completely randomly.

Pair Corralation between Imugene and BSP Financial

Assuming the 90 days trading horizon Imugene is expected to under-perform the BSP Financial. In addition to that, Imugene is 2.84 times more volatile than BSP Financial Group. It trades about -0.03 of its total potential returns per unit of risk. BSP Financial Group is currently generating about 0.07 per unit of volatility. If you would invest  390.00  in BSP Financial Group on October 10, 2024 and sell it today you would earn a total of  309.00  from holding BSP Financial Group or generate 79.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Imugene  vs.  BSP Financial Group

Imugene

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Imugene has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Imugene is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

BSP Financial Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BSP Financial Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, BSP Financial may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Imugene and BSP Financial

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

The idea behind Imugene and BSP Financial Group 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.