Correlation Between Imed Infinity and Bram Indus
Can any of the company-specific risk be diversified away by investing in both Imed Infinity and Bram Indus 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 Imed Infinity and Bram Indus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imed Infinity Medical Limited and Bram Indus, you can compare the effects of market volatilities on Imed Infinity and Bram Indus 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 Imed Infinity with a short position of Bram Indus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imed Infinity and Bram Indus.
Diversification Opportunities for Imed Infinity and Bram Indus
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Imed and Bram is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Imed Infinity Medical Limited and Bram Indus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bram Indus and Imed Infinity 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 Imed Infinity Medical Limited are associated (or correlated) with Bram Indus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bram Indus has no effect on the direction of Imed Infinity i.e., Imed Infinity and Bram Indus go up and down completely randomly.
Pair Corralation between Imed Infinity and Bram Indus
Assuming the 90 days trading horizon Imed Infinity Medical Limited is expected to generate 1.5 times more return on investment than Bram Indus. However, Imed Infinity is 1.5 times more volatile than Bram Indus. It trades about 0.3 of its potential returns per unit of risk. Bram Indus is currently generating about -0.13 per unit of risk. If you would invest 9,910 in Imed Infinity Medical Limited on October 25, 2024 and sell it today you would earn a total of 1,590 from holding Imed Infinity Medical Limited or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imed Infinity Medical Limited vs. Bram Indus
Performance |
| Timeline |
| Imed Infinity Medical |
| Bram Indus |
Imed Infinity and Bram Indus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imed Infinity and Bram Indus
The main advantage of trading using opposite Imed Infinity and Bram Indus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imed Infinity position performs unexpectedly, Bram Indus 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 Bram Indus will offset losses from the drop in Bram Indus' long position.| Imed Infinity vs. Identi Healthcare | Imed Infinity vs. Mivne Real Estate | Imed Infinity vs. Israel Land Development | Imed Infinity vs. Bezeq Israeli Telecommunication |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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