Correlation Between Imed Infinity and Orbit Technologies
Can any of the company-specific risk be diversified away by investing in both Imed Infinity and Orbit Technologies 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 Orbit Technologies 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 Orbit Technologies, you can compare the effects of market volatilities on Imed Infinity and Orbit Technologies 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 Orbit Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imed Infinity and Orbit Technologies.
Diversification Opportunities for Imed Infinity and Orbit Technologies
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Imed and Orbit is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Imed Infinity Medical Limited and Orbit Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orbit Technologies 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 Orbit Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orbit Technologies has no effect on the direction of Imed Infinity i.e., Imed Infinity and Orbit Technologies go up and down completely randomly.
Pair Corralation between Imed Infinity and Orbit Technologies
Assuming the 90 days trading horizon Imed Infinity Medical Limited is expected to under-perform the Orbit Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Imed Infinity Medical Limited is 1.13 times less risky than Orbit Technologies. The stock trades about -0.26 of its potential returns per unit of risk. The Orbit Technologies is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 249,300 in Orbit Technologies on August 29, 2024 and sell it today you would earn a total of 26,800 from holding Orbit Technologies or generate 10.75% return on investment 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. Orbit Technologies
Performance |
| Timeline |
| Imed Infinity Medical |
| Orbit Technologies |
Imed Infinity and Orbit Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imed Infinity and Orbit Technologies
The main advantage of trading using opposite Imed Infinity and Orbit Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imed Infinity position performs unexpectedly, Orbit Technologies 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 Orbit Technologies will offset losses from the drop in Orbit Technologies' long position.| Imed Infinity vs. Brainsway | Imed Infinity vs. Mivne Real Estate | Imed Infinity vs. Photomyne | Imed Infinity vs. Bezeq Israeli Telecommunication |
| Orbit Technologies vs. Elbit Systems | Orbit Technologies vs. Bet Shemesh Engines | Orbit Technologies vs. Maytronics | Orbit Technologies vs. Bezeq Israeli Telecommunication |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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