Correlation Between Alpha Tau and Immuron

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

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

Diversification Opportunities for Alpha Tau and Immuron

-0.43

Correlation Coefficient

Alpha Tau  Immuron

Very good diversification

The 3 months correlation between Alpha and Immuron is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Tau Medical and Immuron Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immuron Ltd ADR and Alpha Tau 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 Alpha Tau Medical are associated (or correlated) with Immuron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immuron Ltd ADR has no effect on the direction of Alpha Tau i.e., Alpha Tau and Immuron go up and down completely randomly.

Pair Corralation between Alpha Tau and Immuron

Given the investment horizon of 90 days Alpha Tau Medical is expected to generate 0.92 times more return on investment than Immuron. However, Alpha Tau Medical is 1.09 times less risky than Immuron. It trades about 0.13 of its potential returns per unit of risk. Immuron Ltd ADR is currently generating about -0.02 per unit of risk. If you would invest  283.00  in Alpha Tau Medical on May 14, 2025 and sell it today you would earn a total of  73.00  from holding Alpha Tau Medical or generate 25.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Alpha Tau Medical  vs.  Immuron Ltd ADR

Alpha Tau Medical

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Tau Medical are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Alpha Tau unveiled solid returns over the last few months and may actually be approaching a breakup point.

Immuron Ltd ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days Immuron Ltd ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Immuron is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Alpha Tau and Immuron

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

The idea behind Alpha Tau Medical and Immuron 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.

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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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.