Correlation Between Electronic Arts and IMAGIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both Electronic Arts and IMAGIN 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 Electronic Arts and IMAGIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and IMAGIN MEDICAL INC, you can compare the effects of market volatilities on Electronic Arts and IMAGIN 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 Electronic Arts with a short position of IMAGIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and IMAGIN MEDICAL.
Diversification Opportunities for Electronic Arts and IMAGIN MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electronic and IMAGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts and IMAGIN MEDICAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAGIN MEDICAL INC and Electronic Arts 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 Electronic Arts are associated (or correlated) with IMAGIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMAGIN MEDICAL INC has no effect on the direction of Electronic Arts i.e., Electronic Arts and IMAGIN MEDICAL go up and down completely randomly.
Pair Corralation between Electronic Arts and IMAGIN MEDICAL
Assuming the 90 days trading horizon Electronic Arts is expected to generate 194.87 times less return on investment than IMAGIN MEDICAL. But when comparing it to its historical volatility, Electronic Arts is 115.68 times less risky than IMAGIN MEDICAL. It trades about 0.09 of its potential returns per unit of risk. IMAGIN MEDICAL INC is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 0.05 in IMAGIN MEDICAL INC on September 2, 2024 and sell it today you would earn a total of 0.00 from holding IMAGIN MEDICAL INC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 89.64% |
| Values | Daily Returns |
Electronic Arts vs. IMAGIN MEDICAL INC
Performance |
| Timeline |
| Electronic Arts |
| IMAGIN MEDICAL INC |
Electronic Arts and IMAGIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and IMAGIN MEDICAL
The main advantage of trading using opposite Electronic Arts and IMAGIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts position performs unexpectedly, IMAGIN 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 IMAGIN MEDICAL will offset losses from the drop in IMAGIN MEDICAL's long position.| Electronic Arts vs. SIVERS SEMICONDUCTORS AB | Electronic Arts vs. Darden Restaurants | Electronic Arts vs. Reliance Steel Aluminum | Electronic Arts vs. Q2M Managementberatung AG |
| IMAGIN MEDICAL vs. ON SEMICONDUCTOR | IMAGIN MEDICAL vs. ULTRA CLEAN HLDGS | IMAGIN MEDICAL vs. Westinghouse Air Brake | IMAGIN MEDICAL vs. Wizz Air Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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