Correlation Between Tutor Perini and Immutep

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

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

Diversification Opportunities for Tutor Perini and Immutep

0.69

Correlation Coefficient

Tutor Perini  Immutep

Poor diversification

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

Pair Corralation between Tutor Perini and Immutep

Considering the 90-day investment horizon Tutor Perini is expected to generate 1.89 times more return on investment than Immutep. However, Tutor Perini is 1.89 times more volatile than Immutep Ltd ADR. It trades about 0.12 of its potential returns per unit of risk. Immutep Ltd ADR is currently generating about 0.03 per unit of risk. If you would invest  1,567  in Tutor Perini on February 5, 2024 and sell it today you would earn a total of  232.00  from holding Tutor Perini or generate 14.81% return on investment over 90 days.

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

Tutor Perini  vs.  Immutep Ltd ADR

Tutor Perini

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tutor Perini are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Tutor Perini exhibited solid returns over the last few months and may actually be approaching a breakup point.

Immutep Ltd ADR

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Immutep Ltd ADR are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, Immutep reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tutor Perini and Immutep

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

The idea behind Tutor Perini and Immutep Ltd ADR 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.