Correlation Between Cooper Metals and Imricor Medical
Can any of the company-specific risk be diversified away by investing in both Cooper Metals 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 Cooper Metals and Imricor Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cooper Metals and Imricor Medical Systems, you can compare the effects of market volatilities on Cooper Metals 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 Cooper Metals with a short position of Imricor Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cooper Metals and Imricor Medical.
Diversification Opportunities for Cooper Metals and Imricor Medical
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cooper and Imricor is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Cooper Metals 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 Cooper Metals 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 Cooper Metals 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 Cooper Metals i.e., Cooper Metals and Imricor Medical go up and down completely randomly.
Pair Corralation between Cooper Metals and Imricor Medical
Assuming the 90 days trading horizon Cooper Metals is expected to under-perform the Imricor Medical. In addition to that, Cooper Metals is 1.4 times more volatile than Imricor Medical Systems. It trades about -0.01 of its total potential returns per unit of risk. Imricor Medical Systems is currently generating about 0.07 per unit of volatility. If you would invest 37.00 in Imricor Medical Systems on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Imricor Medical Systems or generate 213.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cooper Metals vs. Imricor Medical Systems
Performance |
| Timeline |
| Cooper Metals |
| Imricor Medical Systems |
Cooper Metals and Imricor Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cooper Metals and Imricor Medical
The main advantage of trading using opposite Cooper Metals and Imricor Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Metals 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.| Cooper Metals vs. Richmond Vanadium Technology | Cooper Metals vs. Metro Mining | Cooper Metals vs. Ras Technology Holdings | Cooper Metals vs. Dug Technology |
| Imricor Medical vs. Tombador Iron | Imricor Medical vs. Hawsons Iron | Imricor Medical vs. Vulcan Steel | Imricor Medical vs. Ironbark Capital |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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