Correlation Between COSTCO WHOLESALE and IMAGIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both COSTCO WHOLESALE 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 COSTCO WHOLESALE and IMAGIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSTCO WHOLESALE CDR and IMAGIN MEDICAL INC, you can compare the effects of market volatilities on COSTCO WHOLESALE 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 COSTCO WHOLESALE with a short position of IMAGIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSTCO WHOLESALE and IMAGIN MEDICAL.
Diversification Opportunities for COSTCO WHOLESALE and IMAGIN MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between COSTCO and IMAGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding COSTCO WHOLESALE CDR 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 COSTCO WHOLESALE 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 COSTCO WHOLESALE CDR 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 COSTCO WHOLESALE i.e., COSTCO WHOLESALE and IMAGIN MEDICAL go up and down completely randomly.
Pair Corralation between COSTCO WHOLESALE and IMAGIN MEDICAL
If you would invest 2,655 in COSTCO WHOLESALE CDR on September 1, 2024 and sell it today you would earn a total of 305.00 from holding COSTCO WHOLESALE CDR or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
COSTCO WHOLESALE CDR vs. IMAGIN MEDICAL INC
Performance |
| Timeline |
| COSTCO WHOLESALE CDR |
| IMAGIN MEDICAL INC |
COSTCO WHOLESALE and IMAGIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSTCO WHOLESALE and IMAGIN MEDICAL
The main advantage of trading using opposite COSTCO WHOLESALE and IMAGIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSTCO WHOLESALE 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.| COSTCO WHOLESALE vs. Air Lease | COSTCO WHOLESALE vs. XLMedia PLC | COSTCO WHOLESALE vs. Hollywood Bowl Group | COSTCO WHOLESALE vs. Beijing Media |
| IMAGIN MEDICAL vs. Marie Brizard Wine | IMAGIN MEDICAL vs. Siamgas And Petrochemicals | IMAGIN MEDICAL vs. ITALIAN WINE BRANDS | IMAGIN MEDICAL vs. AIR PRODCHEMICALS |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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