Correlation Between IMAGIN MEDICAL and GigaMedia
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and GigaMedia 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 GigaMedia 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 GigaMedia, you can compare the effects of market volatilities on IMAGIN MEDICAL and GigaMedia 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 GigaMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and GigaMedia.
Diversification Opportunities for IMAGIN MEDICAL and GigaMedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and GigaMedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and GigaMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaMedia 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 GigaMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaMedia has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and GigaMedia go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and GigaMedia
If you would invest 123.00 in GigaMedia on September 1, 2024 and sell it today you would earn a total of 10.00 from holding GigaMedia or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. GigaMedia
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| GigaMedia |
IMAGIN MEDICAL and GigaMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and GigaMedia
The main advantage of trading using opposite IMAGIN MEDICAL and GigaMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, GigaMedia 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 GigaMedia will offset losses from the drop in GigaMedia's long position.| IMAGIN MEDICAL vs. Marie Brizard Wine | IMAGIN MEDICAL vs. Siamgas And Petrochemicals | IMAGIN MEDICAL vs. ITALIAN WINE BRANDS | IMAGIN MEDICAL vs. AIR PRODCHEMICALS |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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