Correlation Between Imaflex and O I
Can any of the company-specific risk be diversified away by investing in both Imaflex and O I 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 O I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imaflex and O I Glass, you can compare the effects of market volatilities on Imaflex and O I 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 O I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imaflex and O I.
Diversification Opportunities for Imaflex and O I
Average diversification
The 3 months correlation between Imaflex and O I is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Imaflex and O I Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O I Glass 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 O I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O I Glass has no effect on the direction of Imaflex i.e., Imaflex and O I go up and down completely randomly.
Pair Corralation between Imaflex and O I
Assuming the 90 days horizon Imaflex is expected to generate 1.2 times more return on investment than O I. However, Imaflex is 1.2 times more volatile than O I Glass. It trades about 0.18 of its potential returns per unit of risk. O I Glass is currently generating about 0.02 per unit of risk. If you would invest 52.00 in Imaflex on August 25, 2024 and sell it today you would earn a total of 58.00 from holding Imaflex or generate 111.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Imaflex vs. O I Glass
Performance |
| Timeline |
| Imaflex |
| O I Glass |
Imaflex and O I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imaflex and O I
The main advantage of trading using opposite Imaflex and O I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imaflex position performs unexpectedly, O I 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 O I will offset losses from the drop in O I's long position.| Imaflex vs. Karat Packaging | Imaflex vs. NEXE Innovations | Imaflex vs. DSS Inc | Imaflex vs. good natured Products |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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