Correlation Between Bank of Queensland and Imricor Medical
Can any of the company-specific risk be diversified away by investing in both Bank of Queensland and Imricor 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 Bank of Queensland and Imricor Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Queensland and Imricor Medical Systems, you can compare the effects of market volatilities on Bank of Queensland and Imricor 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 Bank of Queensland with a short position of Imricor Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Queensland and Imricor Medical.
Diversification Opportunities for Bank of Queensland and Imricor Medical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Imricor is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Queensland and Imricor Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imricor Medical Systems and Bank of Queensland 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 Bank of Queensland are associated (or correlated) with Imricor Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imricor Medical Systems has no effect on the direction of Bank of Queensland i.e., Bank of Queensland and Imricor Medical go up and down completely randomly.
Pair Corralation between Bank of Queensland and Imricor Medical
Assuming the 90 days trading horizon Bank of Queensland is expected to generate 19.87 times less return on investment than Imricor Medical. But when comparing it to its historical volatility, Bank of Queensland is 14.34 times less risky than Imricor Medical. It trades about 0.08 of its potential returns per unit of risk. Imricor Medical Systems is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 131.00 in Imricor Medical Systems on November 30, 2024 and sell it today you would earn a total of 27.00 from holding Imricor Medical Systems or generate 20.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Queensland vs. Imricor Medical Systems
Performance |
| Timeline |
| Bank of Queensland |
| Imricor Medical Systems |
Bank of Queensland and Imricor Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Queensland and Imricor Medical
The main advantage of trading using opposite Bank of Queensland and Imricor Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Queensland position performs unexpectedly, Imricor 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 Imricor Medical will offset losses from the drop in Imricor Medical's long position.| Bank of Queensland vs. Janison Education Group | Bank of Queensland vs. Centuria Industrial Reit | Bank of Queensland vs. Hansen Technologies | Bank of Queensland vs. Macquarie Technology Group |
| Imricor Medical vs. Black Rock Mining | Imricor Medical vs. Gateway Mining | Imricor Medical vs. Aussie Broadband | Imricor Medical vs. TPG Telecom |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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