Correlation Between Imed Infinity and Elbit Medical
Can any of the company-specific risk be diversified away by investing in both Imed Infinity and Elbit Medical 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 Elbit Medical 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 Elbit Medical Technologies, you can compare the effects of market volatilities on Imed Infinity and Elbit Medical 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 Elbit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imed Infinity and Elbit Medical.
Diversification Opportunities for Imed Infinity and Elbit Medical
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Imed and Elbit is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Imed Infinity Medical Limited and Elbit Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elbit Medical Techno 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 Elbit Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elbit Medical Techno has no effect on the direction of Imed Infinity i.e., Imed Infinity and Elbit Medical go up and down completely randomly.
Pair Corralation between Imed Infinity and Elbit Medical
Assuming the 90 days trading horizon Imed Infinity Medical Limited is expected to generate 0.45 times more return on investment than Elbit Medical. However, Imed Infinity Medical Limited is 2.23 times less risky than Elbit Medical. It trades about -0.25 of its potential returns per unit of risk. Elbit Medical Technologies is currently generating about -0.13 per unit of risk. If you would invest 10,810 in Imed Infinity Medical Limited on August 29, 2024 and sell it today you would lose (880.00) from holding Imed Infinity Medical Limited or give up 8.14% of portfolio value 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. Elbit Medical Technologies
Performance |
| Timeline |
| Imed Infinity Medical |
| Elbit Medical Techno |
Imed Infinity and Elbit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imed Infinity and Elbit Medical
The main advantage of trading using opposite Imed Infinity and Elbit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imed Infinity position performs unexpectedly, Elbit Medical 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 Elbit Medical will offset losses from the drop in Elbit Medical's long position.| Imed Infinity vs. Identi Healthcare | Imed Infinity vs. B Communications | Imed Infinity vs. Holmes Place International | Imed Infinity vs. Nova |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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