Correlation Between IMAGIN MEDICAL and Dairy Farm
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and Dairy Farm 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 Dairy Farm 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 Dairy Farm International, you can compare the effects of market volatilities on IMAGIN MEDICAL and Dairy Farm 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 Dairy Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and Dairy Farm.
Diversification Opportunities for IMAGIN MEDICAL and Dairy Farm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and Dairy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and Dairy Farm International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dairy Farm International 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 Dairy Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dairy Farm International has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and Dairy Farm go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and Dairy Farm
If you would invest 163.00 in Dairy Farm International on August 28, 2024 and sell it today you would earn a total of 71.00 from holding Dairy Farm International or generate 43.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. Dairy Farm International
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| Dairy Farm International |
IMAGIN MEDICAL and Dairy Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and Dairy Farm
The main advantage of trading using opposite IMAGIN MEDICAL and Dairy Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, Dairy Farm 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 Dairy Farm will offset losses from the drop in Dairy Farm's long position.| IMAGIN MEDICAL vs. Superior Plus Corp | IMAGIN MEDICAL vs. NMI Holdings | IMAGIN MEDICAL vs. Origin Agritech | IMAGIN MEDICAL vs. SIVERS SEMICONDUCTORS AB |
| Dairy Farm vs. Superior Plus Corp | Dairy Farm vs. NMI Holdings | Dairy Farm vs. Origin Agritech | Dairy Farm 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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