Correlation Between CSL and Imricor Medical
Can any of the company-specific risk be diversified away by investing in both CSL 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 CSL and Imricor Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSL and Imricor Medical Systems, you can compare the effects of market volatilities on CSL 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 CSL with a short position of Imricor Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and Imricor Medical.
Diversification Opportunities for CSL and Imricor Medical
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CSL and Imricor is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding CSL 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 CSL 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 CSL 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 CSL i.e., CSL and Imricor Medical go up and down completely randomly.
Pair Corralation between CSL and Imricor Medical
Assuming the 90 days trading horizon CSL is expected to generate 70.67 times less return on investment than Imricor Medical. But when comparing it to its historical volatility, CSL is 5.18 times less risky than Imricor Medical. It trades about 0.0 of its potential returns per unit of risk. Imricor Medical Systems is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 38.00 in Imricor Medical Systems on September 12, 2024 and sell it today you would earn a total of 69.00 from holding Imricor Medical Systems or generate 181.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSL vs. Imricor Medical Systems
Performance |
| Timeline |
| CSL |
| Imricor Medical Systems |
CSL and Imricor Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSL and Imricor Medical
The main advantage of trading using opposite CSL and Imricor Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL 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.The idea behind CSL and Imricor Medical Systems 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.| Imricor Medical vs. CSL | Imricor Medical vs. Tamawood | Imricor Medical vs. Cochlear | Imricor Medical vs. Rea Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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