Correlation Between IMAGIN MEDICAL and GOLD ROAD
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and GOLD ROAD 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 GOLD ROAD 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 GOLD ROAD RES, you can compare the effects of market volatilities on IMAGIN MEDICAL and GOLD ROAD 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 GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and GOLD ROAD.
Diversification Opportunities for IMAGIN MEDICAL and GOLD ROAD
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and GOLD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES 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 GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and GOLD ROAD go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and GOLD ROAD
Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 42.17 times more return on investment than GOLD ROAD. However, IMAGIN MEDICAL is 42.17 times more volatile than GOLD ROAD RES. It trades about 0.17 of its potential returns per unit of risk. GOLD ROAD RES is currently generating about 0.03 per unit of risk. If you would invest 9.54 in IMAGIN MEDICAL INC on October 16, 2024 and sell it today you would lose (9.49) from holding IMAGIN MEDICAL INC or give up 99.48% 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. GOLD ROAD RES
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| GOLD ROAD RES |
IMAGIN MEDICAL and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and GOLD ROAD
The main advantage of trading using opposite IMAGIN MEDICAL and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD's long position.| IMAGIN MEDICAL vs. The Boston Beer | IMAGIN MEDICAL vs. Tsingtao Brewery | IMAGIN MEDICAL vs. Thai Beverage Public | IMAGIN MEDICAL vs. KENEDIX OFFICE INV |
| GOLD ROAD vs. Mitsui Chemicals | GOLD ROAD vs. PENN NATL GAMING | GOLD ROAD vs. GameStop Corp | GOLD ROAD vs. GigaMedia |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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