Correlation Between Imugene and FSA

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

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

Diversification Opportunities for Imugene and FSA

0.85

Correlation Coefficient

Imugene  FSA

Very poor diversification

The 3 months correlation between Imugene and FSA is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Imugene and FSA Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSA 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 FSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSA Group has no effect on the direction of Imugene i.e., Imugene and FSA go up and down completely randomly.

Pair Corralation between Imugene and FSA

Assuming the 90 days trading horizon Imugene is expected to under-perform the FSA. In addition to that, Imugene is 4.67 times more volatile than FSA Group. It trades about -0.01 of its total potential returns per unit of risk. FSA Group is currently generating about 0.07 per unit of volatility. If you would invest  81.00  in FSA Group on September 25, 2024 and sell it today you would earn a total of  1.00  from holding FSA Group or generate 1.23% return on investment over 90 days.

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

Imugene  vs.  FSA 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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

FSA Group

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Imugene and FSA

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

The idea behind Imugene and FSA 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.