Correlation Between IMAGIN MEDICAL and ALIOR BANK
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and ALIOR BANK 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 ALIOR BANK 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 ALIOR BANK, you can compare the effects of market volatilities on IMAGIN MEDICAL and ALIOR BANK 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 ALIOR BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and ALIOR BANK.
Diversification Opportunities for IMAGIN MEDICAL and ALIOR BANK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and ALIOR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and ALIOR BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIOR BANK 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 ALIOR BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIOR BANK has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and ALIOR BANK go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and ALIOR BANK
Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 51.88 times more return on investment than ALIOR BANK. However, IMAGIN MEDICAL is 51.88 times more volatile than ALIOR BANK. It trades about 0.18 of its potential returns per unit of risk. ALIOR BANK is currently generating about 0.1 per unit of risk. If you would invest 14.00 in IMAGIN MEDICAL INC on September 3, 2024 and sell it today you would lose (13.95) from holding IMAGIN MEDICAL INC or give up 99.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. ALIOR BANK
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| ALIOR BANK |
IMAGIN MEDICAL and ALIOR BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and ALIOR BANK
The main advantage of trading using opposite IMAGIN MEDICAL and ALIOR BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, ALIOR BANK 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 ALIOR BANK will offset losses from the drop in ALIOR BANK'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 |
| ALIOR BANK vs. TOTAL GABON | ALIOR BANK vs. Walgreens Boots Alliance | ALIOR BANK vs. Peak Resources Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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