Correlation Between IMAGIN MEDICAL and Autohome
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and Autohome 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 Autohome 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 Autohome ADR, you can compare the effects of market volatilities on IMAGIN MEDICAL and Autohome 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 Autohome. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and Autohome.
Diversification Opportunities for IMAGIN MEDICAL and Autohome
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and Autohome is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and Autohome ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohome ADR 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 Autohome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohome ADR has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and Autohome go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and Autohome
If you would invest 0.05 in IMAGIN MEDICAL INC on October 17, 2024 and sell it today you would earn a total of 0.00 from holding IMAGIN MEDICAL INC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. Autohome ADR
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| Autohome ADR |
IMAGIN MEDICAL and Autohome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and Autohome
The main advantage of trading using opposite IMAGIN MEDICAL and Autohome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, Autohome 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 Autohome will offset losses from the drop in Autohome's long position.| IMAGIN MEDICAL vs. Darden Restaurants | IMAGIN MEDICAL vs. Scandinavian Tobacco Group | IMAGIN MEDICAL vs. Playa Hotels Resorts | IMAGIN MEDICAL vs. Monster Beverage Corp |
| Autohome vs. MEDICAL FACILITIES NEW | Autohome vs. SWISS WATER DECAFFCOFFEE | Autohome vs. GLOBUS MEDICAL A | Autohome vs. Merit Medical Systems |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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