Correlation Between Imaflex and DSS
Can any of the company-specific risk be diversified away by investing in both Imaflex and DSS 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 Imaflex and DSS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imaflex and DSS Inc, you can compare the effects of market volatilities on Imaflex and DSS 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 Imaflex with a short position of DSS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imaflex and DSS.
Diversification Opportunities for Imaflex and DSS
Very weak diversification
The 3 months correlation between Imaflex and DSS is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Imaflex and DSS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSS Inc and Imaflex 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 Imaflex are associated (or correlated) with DSS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSS Inc has no effect on the direction of Imaflex i.e., Imaflex and DSS go up and down completely randomly.
Pair Corralation between Imaflex and DSS
Assuming the 90 days horizon Imaflex is expected to generate 0.25 times more return on investment than DSS. However, Imaflex is 4.05 times less risky than DSS. It trades about -0.05 of its potential returns per unit of risk. DSS Inc is currently generating about -0.13 per unit of risk. If you would invest 105.00 in Imaflex on November 1, 2024 and sell it today you would lose (5.00) from holding Imaflex or give up 4.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Imaflex vs. DSS Inc
Performance |
Timeline |
Imaflex |
DSS Inc |
Imaflex and DSS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Imaflex and DSS
The main advantage of trading using opposite Imaflex and DSS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imaflex position performs unexpectedly, DSS 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 DSS will offset losses from the drop in DSS's long position.Imaflex vs. Karat Packaging | Imaflex vs. NEXE Innovations | Imaflex vs. DSS Inc | Imaflex vs. Silgan 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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