Correlation Between Imed Infinity and Seach Medical
Can any of the company-specific risk be diversified away by investing in both Imed Infinity and Seach 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 Seach 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 Seach Medical Group, you can compare the effects of market volatilities on Imed Infinity and Seach 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 Seach Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imed Infinity and Seach Medical.
Diversification Opportunities for Imed Infinity and Seach Medical
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Imed and Seach is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Imed Infinity Medical Limited and Seach Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seach Medical Group 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 Seach Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seach Medical Group has no effect on the direction of Imed Infinity i.e., Imed Infinity and Seach Medical go up and down completely randomly.
Pair Corralation between Imed Infinity and Seach Medical
Assuming the 90 days trading horizon Imed Infinity Medical Limited is expected to under-perform the Seach Medical. But the stock apears to be less risky and, when comparing its historical volatility, Imed Infinity Medical Limited is 1.01 times less risky than Seach Medical. The stock trades about -0.25 of its potential returns per unit of risk. The Seach Medical Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 26,730 in Seach Medical Group on September 1, 2024 and sell it today you would earn a total of 340.00 from holding Seach Medical Group or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imed Infinity Medical Limited vs. Seach Medical Group
Performance |
| Timeline |
| Imed Infinity Medical |
| Seach Medical Group |
Imed Infinity and Seach Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imed Infinity and Seach Medical
The main advantage of trading using opposite Imed Infinity and Seach Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imed Infinity position performs unexpectedly, Seach 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 Seach Medical will offset losses from the drop in Seach Medical's long position.| Imed Infinity vs. ICL Israel Chemicals | Imed Infinity vs. Abra Information Technologies | Imed Infinity vs. Dan Hotels | Imed Infinity vs. Altshuler Shaham Financial |
| Seach Medical vs. Nextgen | Seach Medical vs. Gencell | Seach Medical vs. Bonus Biogroup | Seach Medical vs. Intelicanna |
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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