Correlation Between IMAGIN MEDICAL and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and CapitaLand Investment 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 IMAGIN MEDICAL and CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMAGIN MEDICAL INC and CapitaLand Investment Limited, you can compare the effects of market volatilities on IMAGIN MEDICAL and CapitaLand Investment 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 IMAGIN MEDICAL with a short position of CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and CapitaLand Investment.
Diversification Opportunities for IMAGIN MEDICAL and CapitaLand Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and CapitaLand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment and IMAGIN MEDICAL 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 IMAGIN MEDICAL INC are associated (or correlated) with CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and CapitaLand Investment go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and CapitaLand Investment
Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 83.03 times more return on investment than CapitaLand Investment. However, IMAGIN MEDICAL is 83.03 times more volatile than CapitaLand Investment Limited. It trades about 0.18 of its potential returns per unit of risk. CapitaLand Investment Limited is currently generating about -0.01 per unit of risk. If you would invest 11.00 in IMAGIN MEDICAL INC on September 3, 2024 and sell it today you would lose (10.95) from holding IMAGIN MEDICAL INC or give up 99.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. CapitaLand Investment Limited
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| CapitaLand Investment |
IMAGIN MEDICAL and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and CapitaLand Investment
The main advantage of trading using opposite IMAGIN MEDICAL and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, CapitaLand Investment 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 CapitaLand Investment will offset losses from the drop in CapitaLand Investment's long position.| IMAGIN MEDICAL vs. National Health Investors | IMAGIN MEDICAL vs. FEMALE HEALTH | IMAGIN MEDICAL vs. HEALTHCARE REAL A | IMAGIN MEDICAL vs. Japan Asia Investment |
| CapitaLand Investment vs. COSTAR GROUP INC | CapitaLand Investment vs. CBRE Group Class | CapitaLand Investment vs. VONOVIA SE ADR | CapitaLand Investment vs. Vonovia SE |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |