Correlation Between CRYOLIFE and ImagineAR
Can any of the company-specific risk be diversified away by investing in both CRYOLIFE and ImagineAR 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 CRYOLIFE and ImagineAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CRYOLIFE and ImagineAR, you can compare the effects of market volatilities on CRYOLIFE and ImagineAR 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 CRYOLIFE with a short position of ImagineAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CRYOLIFE and ImagineAR.
Diversification Opportunities for CRYOLIFE and ImagineAR
Excellent diversification
The 3 months correlation between CRYOLIFE and ImagineAR is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CRYOLIFE and ImagineAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImagineAR and CRYOLIFE 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 CRYOLIFE are associated (or correlated) with ImagineAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImagineAR has no effect on the direction of CRYOLIFE i.e., CRYOLIFE and ImagineAR go up and down completely randomly.
Pair Corralation between CRYOLIFE and ImagineAR
Assuming the 90 days trading horizon CRYOLIFE is expected to generate 0.16 times more return on investment than ImagineAR. However, CRYOLIFE is 6.41 times less risky than ImagineAR. It trades about 0.13 of its potential returns per unit of risk. ImagineAR is currently generating about -0.03 per unit of risk. If you would invest 2,695 in CRYOLIFE on October 26, 2024 and sell it today you would earn a total of 240.00 from holding CRYOLIFE or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
CRYOLIFE vs. ImagineAR
Performance |
| Timeline |
| CRYOLIFE |
| ImagineAR |
CRYOLIFE and ImagineAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CRYOLIFE and ImagineAR
The main advantage of trading using opposite CRYOLIFE and ImagineAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CRYOLIFE position performs unexpectedly, ImagineAR 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 ImagineAR will offset losses from the drop in ImagineAR's long position.| CRYOLIFE vs. Sims Metal Management | CRYOLIFE vs. SUN LIFE FINANCIAL | CRYOLIFE vs. CEOTRONICS | CRYOLIFE vs. Webster Financial |
| ImagineAR vs. Titan Machinery | ImagineAR vs. ELL ENVIRONHLDGS HD 0001 | ImagineAR vs. MOUNT GIBSON IRON | ImagineAR vs. AUST AGRICULTURAL |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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