Correlation Between IMAGIN MEDICAL and Geratherm Medical
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and Geratherm Medical 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 Geratherm Medical 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 Geratherm Medical AG, you can compare the effects of market volatilities on IMAGIN MEDICAL and Geratherm Medical 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 Geratherm Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and Geratherm Medical.
Diversification Opportunities for IMAGIN MEDICAL and Geratherm Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and Geratherm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and Geratherm Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geratherm Medical 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 Geratherm Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geratherm Medical has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and Geratherm Medical go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and Geratherm Medical
If you would invest 316.00 in Geratherm Medical AG on August 30, 2024 and sell it today you would earn a total of 122.00 from holding Geratherm Medical AG or generate 38.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. Geratherm Medical AG
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| Geratherm Medical |
IMAGIN MEDICAL and Geratherm Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and Geratherm Medical
The main advantage of trading using opposite IMAGIN MEDICAL and Geratherm Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, Geratherm Medical 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 Geratherm Medical will offset losses from the drop in Geratherm Medical's long position.| IMAGIN MEDICAL vs. Medtronic PLC | IMAGIN MEDICAL vs. Stryker | IMAGIN MEDICAL vs. Boston Scientific | IMAGIN MEDICAL vs. Edwards Lifesciences |
| Geratherm Medical vs. Medtronic PLC | Geratherm Medical vs. Stryker | Geratherm Medical vs. Boston Scientific | Geratherm Medical vs. Edwards Lifesciences |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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