Correlation Between InfraCap MLP and Immatics
Can any of the company-specific risk be diversified away by investing in both InfraCap MLP and Immatics 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 InfraCap MLP and Immatics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InfraCap MLP ETF and Immatics NV, you can compare the effects of market volatilities on InfraCap MLP and Immatics 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 InfraCap MLP with a short position of Immatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfraCap MLP and Immatics.
Diversification Opportunities for InfraCap MLP and Immatics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between InfraCap and Immatics is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding InfraCap MLP ETF and Immatics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immatics NV and InfraCap MLP 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 InfraCap MLP ETF are associated (or correlated) with Immatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immatics NV has no effect on the direction of InfraCap MLP i.e., InfraCap MLP and Immatics go up and down completely randomly.
Pair Corralation between InfraCap MLP and Immatics
Given the investment horizon of 90 days InfraCap MLP is expected to generate 1.86 times less return on investment than Immatics. But when comparing it to its historical volatility, InfraCap MLP ETF is 3.11 times less risky than Immatics. It trades about 0.09 of its potential returns per unit of risk. Immatics NV is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 735.00 in Immatics NV on January 18, 2024 and sell it today you would earn a total of 303.00 from holding Immatics NV or generate 41.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
InfraCap MLP ETF vs. Immatics NV
Performance |
Timeline |
InfraCap MLP ETF |
Immatics NV |
InfraCap MLP and Immatics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with InfraCap MLP and Immatics
The main advantage of trading using opposite InfraCap MLP and Immatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfraCap MLP position performs unexpectedly, Immatics 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 Immatics will offset losses from the drop in Immatics' long position.InfraCap MLP vs. Virtus InfraCap Preferred | InfraCap MLP vs. Global X MLP | InfraCap MLP vs. Amplify High Income | InfraCap MLP vs. Alerian MLP ETF |
Immatics vs. Crinetics Pharmaceuticals | Immatics vs. Alx Oncology Holdings | Immatics vs. BioatlaInc | Immatics vs. Aerovate Therapeutics |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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