Correlation Between Imed Infinity and Suny Cellular
Can any of the company-specific risk be diversified away by investing in both Imed Infinity and Suny Cellular 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 Suny Cellular 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 Suny Cellular Communication, you can compare the effects of market volatilities on Imed Infinity and Suny Cellular 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 Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imed Infinity and Suny Cellular.
Diversification Opportunities for Imed Infinity and Suny Cellular
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Imed and Suny is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Imed Infinity Medical Limited and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun 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 Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of Imed Infinity i.e., Imed Infinity and Suny Cellular go up and down completely randomly.
Pair Corralation between Imed Infinity and Suny Cellular
Assuming the 90 days trading horizon Imed Infinity is expected to generate 1.94 times less return on investment than Suny Cellular. In addition to that, Imed Infinity is 1.47 times more volatile than Suny Cellular Communication. It trades about 0.02 of its total potential returns per unit of risk. Suny Cellular Communication is currently generating about 0.05 per unit of volatility. If you would invest 10,936 in Suny Cellular Communication on September 1, 2024 and sell it today you would earn a total of 764.00 from holding Suny Cellular Communication or generate 6.99% 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. Suny Cellular Communication
Performance |
| Timeline |
| Imed Infinity Medical |
| Suny Cellular Commun |
Imed Infinity and Suny Cellular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imed Infinity and Suny Cellular
The main advantage of trading using opposite Imed Infinity and Suny Cellular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imed Infinity position performs unexpectedly, Suny Cellular 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 Suny Cellular will offset losses from the drop in Suny Cellular'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 |
| Suny Cellular vs. Palram | Suny Cellular vs. Shagrir Group Vehicle | Suny Cellular vs. EN Shoham Business | Suny Cellular vs. Lapidoth |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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