Correlation Between Image Protect and Ua Multimedia
Can any of the company-specific risk be diversified away by investing in both Image Protect and Ua Multimedia 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 Image Protect and Ua Multimedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Image Protect and Ua Multimedia, you can compare the effects of market volatilities on Image Protect and Ua Multimedia 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 Image Protect with a short position of Ua Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Image Protect and Ua Multimedia.
Diversification Opportunities for Image Protect and Ua Multimedia
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Image and UAMM is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Image Protect and Ua Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ua Multimedia and Image Protect 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 Image Protect are associated (or correlated) with Ua Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ua Multimedia has no effect on the direction of Image Protect i.e., Image Protect and Ua Multimedia go up and down completely randomly.
Pair Corralation between Image Protect and Ua Multimedia
Given the investment horizon of 90 days Image Protect is expected to generate 14.65 times more return on investment than Ua Multimedia. However, Image Protect is 14.65 times more volatile than Ua Multimedia. It trades about 0.21 of its potential returns per unit of risk. Ua Multimedia is currently generating about -0.06 per unit of risk. If you would invest 0.02 in Image Protect on September 1, 2024 and sell it today you would lose (0.01) from holding Image Protect or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Image Protect vs. Ua Multimedia
Performance |
| Timeline |
| Image Protect |
| Ua Multimedia |
Image Protect and Ua Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Image Protect and Ua Multimedia
The main advantage of trading using opposite Image Protect and Ua Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Image Protect position performs unexpectedly, Ua Multimedia 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 Ua Multimedia will offset losses from the drop in Ua Multimedia's long position.| Image Protect vs. AB International Group | Image Protect vs. Bowmo Inc | Image Protect vs. Protek Capital | Image Protect vs. Ackroo Inc |
| Ua Multimedia vs. Image Protect | Ua Multimedia vs. Wanderport Corp | Ua Multimedia vs. Imd Companies | Ua Multimedia vs. MDM Permian |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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