Correlation Between Imed Infinity and Mobile Max
Can any of the company-specific risk be diversified away by investing in both Imed Infinity and Mobile Max 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 Mobile Max 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 Mobile Max M, you can compare the effects of market volatilities on Imed Infinity and Mobile Max 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 Mobile Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imed Infinity and Mobile Max.
Diversification Opportunities for Imed Infinity and Mobile Max
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Imed and Mobile is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Imed Infinity Medical Limited and Mobile Max M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Max M 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 Mobile Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Max M has no effect on the direction of Imed Infinity i.e., Imed Infinity and Mobile Max go up and down completely randomly.
Pair Corralation between Imed Infinity and Mobile Max
Assuming the 90 days trading horizon Imed Infinity is expected to generate 1.11 times less return on investment than Mobile Max. But when comparing it to its historical volatility, Imed Infinity Medical Limited is 1.01 times less risky than Mobile Max. It trades about 0.01 of its potential returns per unit of risk. Mobile Max M is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,490 in Mobile Max M on October 23, 2024 and sell it today you would lose (1,070) from holding Mobile Max M or give up 19.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imed Infinity Medical Limited vs. Mobile Max M
Performance |
| Timeline |
| Imed Infinity Medical |
| Mobile Max M |
Imed Infinity and Mobile Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imed Infinity and Mobile Max
The main advantage of trading using opposite Imed Infinity and Mobile Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imed Infinity position performs unexpectedly, Mobile Max 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 Mobile Max will offset losses from the drop in Mobile Max's long position.| Imed Infinity vs. Adgar Investments and | Imed Infinity vs. Feat Fund Investments | Imed Infinity vs. Magic Software Enterprises | Imed Infinity vs. MediPress Health Limited Partnership |
| Mobile Max vs. Batm Advanced Communications | Mobile Max vs. Sofwave Medical | Mobile Max vs. Retailors | Mobile Max vs. Meitav Trade Inv |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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