Correlation Between IMAGIN MEDICAL and Nine Dragons
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and Nine Dragons 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 Nine Dragons 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 Nine Dragons Paper, you can compare the effects of market volatilities on IMAGIN MEDICAL and Nine Dragons 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 Nine Dragons. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and Nine Dragons.
Diversification Opportunities for IMAGIN MEDICAL and Nine Dragons
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and Nine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and Nine Dragons Paper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Dragons Paper 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 Nine Dragons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Dragons Paper has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and Nine Dragons go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and Nine Dragons
Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 26.1 times more return on investment than Nine Dragons. However, IMAGIN MEDICAL is 26.1 times more volatile than Nine Dragons Paper. It trades about 0.17 of its potential returns per unit of risk. Nine Dragons Paper is currently generating about 0.01 per unit of risk. If you would invest 1.60 in IMAGIN MEDICAL INC on September 3, 2024 and sell it today you would lose (1.55) from holding IMAGIN MEDICAL INC or give up 96.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.68% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. Nine Dragons Paper
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| Nine Dragons Paper |
IMAGIN MEDICAL and Nine Dragons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and Nine Dragons
The main advantage of trading using opposite IMAGIN MEDICAL and Nine Dragons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, Nine Dragons 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 Nine Dragons will offset losses from the drop in Nine Dragons' long position.| IMAGIN MEDICAL vs. National Health Investors | IMAGIN MEDICAL vs. FEMALE HEALTH | IMAGIN MEDICAL vs. HEALTHCARE REAL A | IMAGIN MEDICAL vs. Japan Asia Investment |
| Nine Dragons vs. CDN IMPERIAL BANK | Nine Dragons vs. EPSILON HEALTHCARE LTD | Nine Dragons vs. Bumrungrad Hospital Public | Nine Dragons vs. EHEALTH |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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