Correlation Between Imed Infinity and Sarine Technologies
Can any of the company-specific risk be diversified away by investing in both Imed Infinity and Sarine 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 Sarine 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 Sarine Technologies, you can compare the effects of market volatilities on Imed Infinity and Sarine 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 Sarine Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imed Infinity and Sarine Technologies.
Diversification Opportunities for Imed Infinity and Sarine Technologies
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Imed and Sarine is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Imed Infinity Medical Limited and Sarine Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sarine 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 Sarine Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sarine Technologies has no effect on the direction of Imed Infinity i.e., Imed Infinity and Sarine Technologies go up and down completely randomly.
Pair Corralation between Imed Infinity and Sarine Technologies
Assuming the 90 days trading horizon Imed Infinity Medical Limited is expected to generate 1.52 times more return on investment than Sarine Technologies. However, Imed Infinity is 1.52 times more volatile than Sarine Technologies. It trades about 0.0 of its potential returns per unit of risk. Sarine Technologies is currently generating about -0.03 per unit of risk. If you would invest 14,550 in Imed Infinity Medical Limited on September 3, 2024 and sell it today you would lose (4,610) from holding Imed Infinity Medical Limited or give up 31.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imed Infinity Medical Limited vs. Sarine Technologies
Performance |
| Timeline |
| Imed Infinity Medical |
| Sarine Technologies |
Imed Infinity and Sarine Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imed Infinity and Sarine Technologies
The main advantage of trading using opposite Imed Infinity and Sarine Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imed Infinity position performs unexpectedly, Sarine 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 Sarine Technologies will offset losses from the drop in Sarine Technologies' long position.| Imed Infinity vs. Brainsway | Imed Infinity vs. Mivne Real Estate | Imed Infinity vs. Photomyne | Imed Infinity vs. Israel Land Development |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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