Correlation Between IMAGIN MEDICAL and Park Hotels
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and Park Hotels 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 Park Hotels 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 Park Hotels Resorts, you can compare the effects of market volatilities on IMAGIN MEDICAL and Park Hotels 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 Park Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and Park Hotels.
Diversification Opportunities for IMAGIN MEDICAL and Park Hotels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and Park is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and Park Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Hotels Resorts 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 Park Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Hotels Resorts has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and Park Hotels go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and Park Hotels
Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 55.97 times more return on investment than Park Hotels. However, IMAGIN MEDICAL is 55.97 times more volatile than Park Hotels Resorts. It trades about 0.18 of its potential returns per unit of risk. Park Hotels Resorts is currently generating about 0.06 per unit of risk. If you would invest 12.00 in IMAGIN MEDICAL INC on September 12, 2024 and sell it today you would lose (11.95) from holding IMAGIN MEDICAL INC or give up 99.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. Park Hotels Resorts
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| Park Hotels Resorts |
IMAGIN MEDICAL and Park Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and Park Hotels
The main advantage of trading using opposite IMAGIN MEDICAL and Park Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, Park Hotels 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 Park Hotels will offset losses from the drop in Park Hotels' long position.| IMAGIN MEDICAL vs. Align Technology | IMAGIN MEDICAL vs. Superior Plus Corp | IMAGIN MEDICAL vs. SIVERS SEMICONDUCTORS AB | IMAGIN MEDICAL vs. Norsk Hydro ASA |
| Park Hotels vs. Apple Inc | Park Hotels vs. Apple Inc | Park Hotels vs. Apple Inc | Park Hotels vs. Apple Inc |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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