Correlation Between Cohen Dev and Imed Infinity

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cohen Dev and Imed Infinity 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 Cohen Dev and Imed Infinity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Dev and Imed Infinity Medical Limited, you can compare the effects of market volatilities on Cohen Dev and Imed Infinity 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 Cohen Dev with a short position of Imed Infinity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Dev and Imed Infinity.

Diversification Opportunities for Cohen Dev and Imed Infinity

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Cohen and Imed is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Dev and Imed Infinity Medical Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imed Infinity Medical and Cohen Dev 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 Cohen Dev are associated (or correlated) with Imed Infinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imed Infinity Medical has no effect on the direction of Cohen Dev i.e., Cohen Dev and Imed Infinity go up and down completely randomly.

Pair Corralation between Cohen Dev and Imed Infinity

Assuming the 90 days trading horizon Cohen Dev is expected to generate 1.23 times more return on investment than Imed Infinity. However, Cohen Dev is 1.23 times more volatile than Imed Infinity Medical Limited. It trades about 0.47 of its potential returns per unit of risk. Imed Infinity Medical Limited is currently generating about -0.22 per unit of risk. If you would invest  1,140,000  in Cohen Dev on August 29, 2024 and sell it today you would earn a total of  286,000  from holding Cohen Dev or generate 25.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Cohen Dev  vs.  Imed Infinity Medical Limited

 Performance 
       Timeline  
Cohen Dev 

Risk-Adjusted Performance

24 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Dev are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cohen Dev sustained solid returns over the last few months and may actually be approaching a breakup point.
Imed Infinity Medical 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Imed Infinity Medical Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Cohen Dev and Imed Infinity Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cohen Dev and Imed Infinity

The main advantage of trading using opposite Cohen Dev and Imed Infinity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Dev position performs unexpectedly, Imed Infinity 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 Imed Infinity will offset losses from the drop in Imed Infinity's long position.
The idea behind Cohen Dev and Imed Infinity Medical Limited 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios