Correlation Between Imricor Medical and Macquarie
Can any of the company-specific risk be diversified away by investing in both Imricor Medical and Macquarie 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 Imricor Medical and Macquarie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imricor Medical Systems and Macquarie Group, you can compare the effects of market volatilities on Imricor Medical and Macquarie 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 Imricor Medical with a short position of Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imricor Medical and Macquarie.
Diversification Opportunities for Imricor Medical and Macquarie
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Imricor and Macquarie is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Imricor Medical Systems and Macquarie Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group and Imricor Medical 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 Imricor Medical Systems are associated (or correlated) with Macquarie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of Imricor Medical i.e., Imricor Medical and Macquarie go up and down completely randomly.
Pair Corralation between Imricor Medical and Macquarie
Assuming the 90 days trading horizon Imricor Medical Systems is expected to generate 8.23 times more return on investment than Macquarie. However, Imricor Medical is 8.23 times more volatile than Macquarie Group. It trades about 0.22 of its potential returns per unit of risk. Macquarie Group is currently generating about -0.15 per unit of risk. If you would invest 87.00 in Imricor Medical Systems on September 13, 2024 and sell it today you would earn a total of 27.00 from holding Imricor Medical Systems or generate 31.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imricor Medical Systems vs. Macquarie Group
Performance |
| Timeline |
| Imricor Medical Systems |
| Macquarie Group |
Imricor Medical and Macquarie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imricor Medical and Macquarie
The main advantage of trading using opposite Imricor Medical and Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imricor Medical position performs unexpectedly, Macquarie 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 Macquarie will offset losses from the drop in Macquarie's long position.| Imricor Medical vs. Macquarie Group | Imricor Medical vs. Rio Tinto | Imricor Medical vs. CSL | Imricor Medical vs. Commonwealth Bank of |
| Macquarie vs. Black Rock Mining | Macquarie vs. MetalsGrove Mining | Macquarie vs. Microequities Asset Management | Macquarie vs. Australian Unity Office |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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