Correlation Between IMAGIN MEDICAL and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and PARKEN Sport 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 PARKEN Sport 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 PARKEN Sport Entertainment, you can compare the effects of market volatilities on IMAGIN MEDICAL and PARKEN Sport 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 PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and PARKEN Sport.
Diversification Opportunities for IMAGIN MEDICAL and PARKEN Sport
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and PARKEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta 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 PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and PARKEN Sport go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and PARKEN Sport
Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 16.25 times more return on investment than PARKEN Sport. However, IMAGIN MEDICAL is 16.25 times more volatile than PARKEN Sport Entertainment. It trades about 0.14 of its potential returns per unit of risk. PARKEN Sport Entertainment is currently generating about 0.06 per unit of risk. If you would invest 1.35 in IMAGIN MEDICAL INC on August 26, 2024 and sell it today you would lose (1.30) from holding IMAGIN MEDICAL INC or give up 96.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| PARKEN Sport Enterta |
IMAGIN MEDICAL and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and PARKEN Sport
The main advantage of trading using opposite IMAGIN MEDICAL and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport's long position.| IMAGIN MEDICAL vs. IDP EDUCATION LTD | IMAGIN MEDICAL vs. HK Electric Investments | IMAGIN MEDICAL vs. New Residential Investment | IMAGIN MEDICAL vs. Sixt Leasing SE |
| PARKEN Sport vs. The Walt Disney | PARKEN Sport vs. Superior Plus Corp | PARKEN Sport vs. NMI Holdings | PARKEN Sport vs. Origin Agritech |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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