Correlation Between IMAGIN MEDICAL and CSL
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and CSL 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 CSL 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 CSL LTD SPONADR, you can compare the effects of market volatilities on IMAGIN MEDICAL and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and CSL.
Diversification Opportunities for IMAGIN MEDICAL and CSL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and CSL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and CSL go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and CSL
Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 88.98 times more return on investment than CSL. However, IMAGIN MEDICAL is 88.98 times more volatile than CSL LTD SPONADR. It trades about 0.18 of its potential returns per unit of risk. CSL LTD SPONADR is currently generating about 0.0 per unit of risk. If you would invest 11.00 in IMAGIN MEDICAL INC on September 26, 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 | 100.0% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. CSL LTD SPONADR
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| CSL LTD SPONADR |
IMAGIN MEDICAL and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and CSL
The main advantage of trading using opposite IMAGIN MEDICAL and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| IMAGIN MEDICAL vs. GREENX METALS LTD | IMAGIN MEDICAL vs. Jacquet Metal Service | IMAGIN MEDICAL vs. DISTRICT METALS | IMAGIN MEDICAL vs. ADRIATIC METALS LS 013355 |
| CSL vs. IMAGIN MEDICAL INC | CSL vs. Merit Medical Systems | CSL vs. Perdoceo Education | CSL vs. Sims Metal Management |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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