Correlation Between CapitaLand Investment and IMAGIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both CapitaLand Investment and IMAGIN MEDICAL 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 CapitaLand Investment and IMAGIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CapitaLand Investment Limited and IMAGIN MEDICAL INC, you can compare the effects of market volatilities on CapitaLand Investment and IMAGIN MEDICAL 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 CapitaLand Investment with a short position of IMAGIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Investment and IMAGIN MEDICAL.
Diversification Opportunities for CapitaLand Investment and IMAGIN MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CapitaLand and IMAGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Investment Limited and IMAGIN MEDICAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAGIN MEDICAL INC and CapitaLand Investment 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 CapitaLand Investment Limited are associated (or correlated) with IMAGIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMAGIN MEDICAL INC has no effect on the direction of CapitaLand Investment i.e., CapitaLand Investment and IMAGIN MEDICAL go up and down completely randomly.
Pair Corralation between CapitaLand Investment and IMAGIN MEDICAL
Assuming the 90 days horizon CapitaLand Investment Limited is expected to under-perform the IMAGIN MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, CapitaLand Investment Limited is 83.03 times less risky than IMAGIN MEDICAL. The stock trades about -0.01 of its potential returns per unit of risk. The IMAGIN MEDICAL INC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 11.00 in IMAGIN MEDICAL INC on September 3, 2024 and sell it today you would lose (10.95) from holding IMAGIN MEDICAL INC or give up 99.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CapitaLand Investment Limited vs. IMAGIN MEDICAL INC
Performance |
| Timeline |
| CapitaLand Investment |
| IMAGIN MEDICAL INC |
CapitaLand Investment and IMAGIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Investment and IMAGIN MEDICAL
The main advantage of trading using opposite CapitaLand Investment and IMAGIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Investment position performs unexpectedly, IMAGIN MEDICAL 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 IMAGIN MEDICAL will offset losses from the drop in IMAGIN MEDICAL's long position.| CapitaLand Investment vs. COSTAR GROUP INC | CapitaLand Investment vs. CBRE Group Class | CapitaLand Investment vs. VONOVIA SE ADR | CapitaLand Investment vs. Vonovia SE |
| IMAGIN MEDICAL vs. National Health Investors | IMAGIN MEDICAL vs. FEMALE HEALTH | IMAGIN MEDICAL vs. HEALTHCARE REAL A | IMAGIN MEDICAL vs. Japan Asia 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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