Correlation Between IMAGIN MEDICAL and FLOW TRADERS
Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and FLOW TRADERS 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 FLOW TRADERS 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 FLOW TRADERS LTD, you can compare the effects of market volatilities on IMAGIN MEDICAL and FLOW TRADERS 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 FLOW TRADERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and FLOW TRADERS.
Diversification Opportunities for IMAGIN MEDICAL and FLOW TRADERS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMAGIN and FLOW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and FLOW TRADERS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLOW TRADERS LTD 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 FLOW TRADERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLOW TRADERS LTD has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and FLOW TRADERS go up and down completely randomly.
Pair Corralation between IMAGIN MEDICAL and FLOW TRADERS
Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 50.96 times more return on investment than FLOW TRADERS. However, IMAGIN MEDICAL is 50.96 times more volatile than FLOW TRADERS LTD. It trades about 0.12 of its potential returns per unit of risk. FLOW TRADERS LTD is currently generating about 0.05 per unit of risk. If you would invest 0.75 in IMAGIN MEDICAL INC on September 14, 2024 and sell it today you would lose (0.70) from holding IMAGIN MEDICAL INC or give up 93.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
IMAGIN MEDICAL INC vs. FLOW TRADERS LTD
Performance |
| Timeline |
| IMAGIN MEDICAL INC |
| FLOW TRADERS LTD |
IMAGIN MEDICAL and FLOW TRADERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMAGIN MEDICAL and FLOW TRADERS
The main advantage of trading using opposite IMAGIN MEDICAL and FLOW TRADERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, FLOW TRADERS 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 FLOW TRADERS will offset losses from the drop in FLOW TRADERS's 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 |
| FLOW TRADERS vs. Superior Plus Corp | FLOW TRADERS vs. SIVERS SEMICONDUCTORS AB | FLOW TRADERS vs. CHINA HUARONG ENERHD 50 | FLOW TRADERS vs. NORDIC HALIBUT AS |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |