Correlation Between Imed Infinity and Identi Healthcare
Can any of the company-specific risk be diversified away by investing in both Imed Infinity and Identi Healthcare 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 Identi Healthcare 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 Identi Healthcare, you can compare the effects of market volatilities on Imed Infinity and Identi Healthcare 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 Identi Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imed Infinity and Identi Healthcare.
Diversification Opportunities for Imed Infinity and Identi Healthcare
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Imed and Identi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Imed Infinity Medical Limited and Identi Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identi Healthcare 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 Identi Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identi Healthcare has no effect on the direction of Imed Infinity i.e., Imed Infinity and Identi Healthcare go up and down completely randomly.
Pair Corralation between Imed Infinity and Identi Healthcare
Assuming the 90 days trading horizon Imed Infinity Medical Limited is expected to generate 1.47 times more return on investment than Identi Healthcare. However, Imed Infinity is 1.47 times more volatile than Identi Healthcare. It trades about -0.03 of its potential returns per unit of risk. Identi Healthcare is currently generating about -0.38 per unit of risk. If you would invest 12,100 in Imed Infinity Medical Limited on January 16, 2025 and sell it today you would lose (3,060) from holding Imed Infinity Medical Limited or give up 25.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imed Infinity Medical Limited vs. Identi Healthcare
Performance |
| Timeline |
| Imed Infinity Medical |
| Identi Healthcare |
Imed Infinity and Identi Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imed Infinity and Identi Healthcare
The main advantage of trading using opposite Imed Infinity and Identi Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imed Infinity position performs unexpectedly, Identi Healthcare 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 Identi Healthcare will offset losses from the drop in Identi Healthcare's long position.| Imed Infinity vs. YD More Investments | Imed Infinity vs. ICL Israel Chemicals | Imed Infinity vs. Epitomee Medical | Imed Infinity vs. Petrochemical |
| Identi Healthcare vs. Epitomee Medical | Identi Healthcare vs. Israel Discount Bank | Identi Healthcare vs. Arad Investment Industrial | Identi Healthcare vs. Oron Group Investments |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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