Correlation Between IMAGIN MEDICAL and SWISS WATER
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and SWISS WATER 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 SWISS WATER 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 SWISS WATER DECAFFCOFFEE, you can compare the effects of market volatilities on IMAGIN MEDICAL and SWISS WATER 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 SWISS WATER. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and SWISS WATER.
Diversification Opportunities for IMAGIN MEDICAL and SWISS WATER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and SWISS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and SWISS WATER DECAFFCOFFEE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWISS WATER DECAFFCOFFEE 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 SWISS WATER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWISS WATER DECAFFCOFFEE has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and SWISS WATER go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and SWISS WATER
If you would invest 252.00 in SWISS WATER DECAFFCOFFEE on September 2, 2024 and sell it today you would earn a total of 20.00 from holding SWISS WATER DECAFFCOFFEE or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. SWISS WATER DECAFFCOFFEE
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| SWISS WATER DECAFFCOFFEE |
IMAGIN MEDICAL and SWISS WATER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and SWISS WATER
The main advantage of trading using opposite IMAGIN MEDICAL and SWISS WATER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, SWISS WATER 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 SWISS WATER will offset losses from the drop in SWISS WATER's long position.| IMAGIN MEDICAL vs. ON SEMICONDUCTOR | IMAGIN MEDICAL vs. ULTRA CLEAN HLDGS | IMAGIN MEDICAL vs. Westinghouse Air Brake | IMAGIN MEDICAL vs. Wizz Air Holdings |
| SWISS WATER vs. Molson Coors Beverage | SWISS WATER vs. Suntory Beverage Food | SWISS WATER vs. COSMOSTEEL HLDGS | SWISS WATER vs. Khiron Life Sciences |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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