Correlation Between IMAGIN MEDICAL and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and CHINA TONTINE 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 CHINA TONTINE 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 CHINA TONTINE WINES, you can compare the effects of market volatilities on IMAGIN MEDICAL and CHINA TONTINE 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 CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and CHINA TONTINE.
Diversification Opportunities for IMAGIN MEDICAL and CHINA TONTINE
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and CHINA is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES 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 CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and CHINA TONTINE go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and CHINA TONTINE
If you would invest 7.00 in CHINA TONTINE WINES on August 30, 2024 and sell it today you would earn a total of 0.00 from holding CHINA TONTINE WINES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. CHINA TONTINE WINES
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| CHINA TONTINE WINES |
IMAGIN MEDICAL and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and CHINA TONTINE
The main advantage of trading using opposite IMAGIN MEDICAL and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| IMAGIN MEDICAL vs. Medtronic PLC | IMAGIN MEDICAL vs. Stryker | IMAGIN MEDICAL vs. Boston Scientific | IMAGIN MEDICAL vs. Edwards Lifesciences |
| CHINA TONTINE vs. SPORTING | CHINA TONTINE vs. X FAB Silicon Foundries | CHINA TONTINE vs. Transport International Holdings | CHINA TONTINE vs. MACOM Technology Solutions |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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