Correlation Between IMAGIN MEDICAL and Align Technology
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and Align Technology 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 Align Technology 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 Align Technology, you can compare the effects of market volatilities on IMAGIN MEDICAL and Align Technology 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 Align Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and Align Technology.
Diversification Opportunities for IMAGIN MEDICAL and Align Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and Align is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology 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 Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and Align Technology go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and Align Technology
Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 32.12 times more return on investment than Align Technology. However, IMAGIN MEDICAL is 32.12 times more volatile than Align Technology. It trades about 0.1 of its potential returns per unit of risk. Align Technology is currently generating about -0.01 per unit of risk. If you would invest 0.75 in IMAGIN MEDICAL INC on August 25, 2024 and sell it today you would lose (0.70) from holding IMAGIN MEDICAL INC or give up 93.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. Align Technology
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| Align Technology |
IMAGIN MEDICAL and Align Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and Align Technology
The main advantage of trading using opposite IMAGIN MEDICAL and Align Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, Align Technology 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 Align Technology will offset losses from the drop in Align Technology's long position.| IMAGIN MEDICAL vs. Align Technology | IMAGIN MEDICAL vs. Superior Plus Corp | IMAGIN MEDICAL vs. NMI Holdings | IMAGIN MEDICAL vs. Origin Agritech |
| Align Technology vs. Superior Plus Corp | Align Technology vs. NMI Holdings | Align Technology vs. Origin Agritech | Align Technology vs. SIVERS SEMICONDUCTORS AB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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