Correlation Between IMAGIN MEDICAL and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and Maple Leaf 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 Maple Leaf 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 Maple Leaf Foods, you can compare the effects of market volatilities on IMAGIN MEDICAL and Maple Leaf 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 Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and Maple Leaf.
Diversification Opportunities for IMAGIN MEDICAL and Maple Leaf
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and Maple is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and Maple Leaf go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and Maple Leaf
Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 62.74 times more return on investment than Maple Leaf. However, IMAGIN MEDICAL is 62.74 times more volatile than Maple Leaf Foods. It trades about 0.17 of its potential returns per unit of risk. Maple Leaf Foods is currently generating about 0.0 per unit of risk. If you would invest 9.68 in IMAGIN MEDICAL INC on November 9, 2024 and sell it today you would lose (9.63) 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 | 99.8% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. Maple Leaf Foods
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| Maple Leaf Foods |
IMAGIN MEDICAL and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and Maple Leaf
The main advantage of trading using opposite IMAGIN MEDICAL and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| IMAGIN MEDICAL vs. Take Two Interactive Software | IMAGIN MEDICAL vs. Alfa Financial Software | IMAGIN MEDICAL vs. ITALIAN WINE BRANDS | IMAGIN MEDICAL vs. PENN Entertainment |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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