Correlation Between Imricor Medical and Paladin Energy
Can any of the company-specific risk be diversified away by investing in both Imricor Medical and Paladin Energy 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 Paladin Energy 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 Paladin Energy, you can compare the effects of market volatilities on Imricor Medical and Paladin Energy 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 Paladin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imricor Medical and Paladin Energy.
Diversification Opportunities for Imricor Medical and Paladin Energy
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Imricor and Paladin is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Imricor Medical Systems and Paladin Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paladin Energy 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 Paladin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paladin Energy has no effect on the direction of Imricor Medical i.e., Imricor Medical and Paladin Energy go up and down completely randomly.
Pair Corralation between Imricor Medical and Paladin Energy
Assuming the 90 days trading horizon Imricor Medical Systems is expected to generate 1.5 times more return on investment than Paladin Energy. However, Imricor Medical is 1.5 times more volatile than Paladin Energy. It trades about 0.07 of its potential returns per unit of risk. Paladin Energy is currently generating about 0.02 per unit of risk. If you would invest 37.00 in Imricor Medical Systems on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Imricor Medical Systems or generate 213.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imricor Medical Systems vs. Paladin Energy
Performance |
| Timeline |
| Imricor Medical Systems |
| Paladin Energy |
Imricor Medical and Paladin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imricor Medical and Paladin Energy
The main advantage of trading using opposite Imricor Medical and Paladin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imricor Medical position performs unexpectedly, Paladin Energy 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 Paladin Energy will offset losses from the drop in Paladin Energy's long position.| Imricor Medical vs. Tombador Iron | Imricor Medical vs. Hawsons Iron | Imricor Medical vs. Vulcan Steel | Imricor Medical vs. Ironbark Capital |
| Paladin Energy vs. Metro Mining | Paladin Energy vs. Clime Investment Management | Paladin Energy vs. Alternative Investment Trust | Paladin Energy vs. Talisman Mining |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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