Correlation Between Imed Infinity and Electreon Wireless
Can any of the company-specific risk be diversified away by investing in both Imed Infinity and Electreon Wireless 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 Electreon Wireless 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 Electreon Wireless, you can compare the effects of market volatilities on Imed Infinity and Electreon Wireless 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 Electreon Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imed Infinity and Electreon Wireless.
Diversification Opportunities for Imed Infinity and Electreon Wireless
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Imed and Electreon is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Imed Infinity Medical Limited and Electreon Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electreon Wireless 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 Electreon Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electreon Wireless has no effect on the direction of Imed Infinity i.e., Imed Infinity and Electreon Wireless go up and down completely randomly.
Pair Corralation between Imed Infinity and Electreon Wireless
Assuming the 90 days trading horizon Imed Infinity Medical Limited is expected to generate 0.31 times more return on investment than Electreon Wireless. However, Imed Infinity Medical Limited is 3.24 times less risky than Electreon Wireless. It trades about -0.35 of its potential returns per unit of risk. Electreon Wireless is currently generating about -0.12 per unit of risk. If you would invest 11,030 in Imed Infinity Medical Limited on September 4, 2024 and sell it today you would lose (1,090) from holding Imed Infinity Medical Limited or give up 9.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Imed Infinity Medical Limited vs. Electreon Wireless
Performance |
| Timeline |
| Imed Infinity Medical |
| Electreon Wireless |
Imed Infinity and Electreon Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imed Infinity and Electreon Wireless
The main advantage of trading using opposite Imed Infinity and Electreon Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imed Infinity position performs unexpectedly, Electreon Wireless 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 Electreon Wireless will offset losses from the drop in Electreon Wireless' long position.| Imed Infinity vs. Brainsway | Imed Infinity vs. Mivne Real Estate | Imed Infinity vs. Photomyne | Imed Infinity vs. Israel Land Development |
| Electreon Wireless vs. Augwind Energy Tech | Electreon Wireless vs. Enlight Renewable Energy | Electreon Wireless vs. Maytronics | Electreon Wireless vs. Fattal 1998 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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