Correlation Between Cal-Maine Foods and IMAGIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both Cal-Maine Foods 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 Cal-Maine Foods and IMAGIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cal Maine Foods and IMAGIN MEDICAL INC, you can compare the effects of market volatilities on Cal-Maine Foods 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 Cal-Maine Foods with a short position of IMAGIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal-Maine Foods and IMAGIN MEDICAL.
Diversification Opportunities for Cal-Maine Foods and IMAGIN MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cal-Maine and IMAGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cal Maine Foods 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 Cal-Maine Foods 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 Cal Maine Foods 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 Cal-Maine Foods i.e., Cal-Maine Foods and IMAGIN MEDICAL go up and down completely randomly.
Pair Corralation between Cal-Maine Foods and IMAGIN MEDICAL
Assuming the 90 days trading horizon Cal-Maine Foods is expected to generate 14.81 times less return on investment than IMAGIN MEDICAL. But when comparing it to its historical volatility, Cal Maine Foods is 26.67 times less risky than IMAGIN MEDICAL. It trades about 0.09 of its potential returns per unit of risk. IMAGIN MEDICAL INC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2.10 in IMAGIN MEDICAL INC on December 12, 2024 and sell it today you would lose (2.05) from holding IMAGIN MEDICAL INC or give up 97.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Cal Maine Foods vs. IMAGIN MEDICAL INC
Performance |
| Timeline |
| Cal Maine Foods |
| IMAGIN MEDICAL INC |
Cal-Maine Foods and IMAGIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cal-Maine Foods and IMAGIN MEDICAL
The main advantage of trading using opposite Cal-Maine Foods and IMAGIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal-Maine Foods 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.| Cal-Maine Foods vs. ASPEN TECHINC DL | ||
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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