Correlation Between Imed Infinity and C I
Can any of the company-specific risk be diversified away by investing in both Imed Infinity and C 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 Imed Infinity and C I 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 C I Systems, you can compare the effects of market volatilities on Imed Infinity and C 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 Imed Infinity with a short position of C I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imed Infinity and C I.
Diversification Opportunities for Imed Infinity and C I
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Imed and CISY is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Imed Infinity Medical Limited and C I Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C I Systems 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 C I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C I Systems has no effect on the direction of Imed Infinity i.e., Imed Infinity and C I go up and down completely randomly.
Pair Corralation between Imed Infinity and C I
Assuming the 90 days trading horizon Imed Infinity Medical Limited is expected to under-perform the C I. In addition to that, Imed Infinity is 1.25 times more volatile than C I Systems. It trades about -0.35 of its total potential returns per unit of risk. C I Systems is currently generating about 0.02 per unit of volatility. If you would invest 140,000 in C I Systems on September 4, 2024 and sell it today you would earn a total of 400.00 from holding C I Systems or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Imed Infinity Medical Limited vs. C I Systems
Performance |
| Timeline |
| Imed Infinity Medical |
| C I Systems |
Imed Infinity and C I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imed Infinity and C I
The main advantage of trading using opposite Imed Infinity and C I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imed Infinity position performs unexpectedly, C 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 C I will offset losses from the drop in C I's long position.| Imed Infinity vs. Brainsway | Imed Infinity vs. Mivne Real Estate | Imed Infinity vs. Photomyne | Imed Infinity vs. Israel Land Development |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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