Correlation Between LION ONE and IMAGIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both LION ONE and IMAGIN 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 LION ONE and IMAGIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LION ONE METALS and IMAGIN MEDICAL INC, you can compare the effects of market volatilities on LION ONE and IMAGIN 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 LION ONE with a short position of IMAGIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of LION ONE and IMAGIN MEDICAL.
Diversification Opportunities for LION ONE and IMAGIN MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LION and IMAGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LION ONE METALS and IMAGIN MEDICAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAGIN MEDICAL INC and LION ONE 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 LION ONE METALS are associated (or correlated) with IMAGIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMAGIN MEDICAL INC has no effect on the direction of LION ONE i.e., LION ONE and IMAGIN MEDICAL go up and down completely randomly.
Pair Corralation between LION ONE and IMAGIN MEDICAL
Assuming the 90 days trading horizon LION ONE METALS is expected to under-perform the IMAGIN MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, LION ONE METALS is 26.29 times less risky than IMAGIN MEDICAL. The stock trades about -0.02 of its potential returns per unit of risk. The IMAGIN MEDICAL INC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 5.85 in IMAGIN MEDICAL INC on January 15, 2025 and sell it today you would lose (5.80) from holding IMAGIN MEDICAL INC or give up 99.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
LION ONE METALS vs. IMAGIN MEDICAL INC
Performance |
| Timeline |
| LION ONE METALS |
| IMAGIN MEDICAL INC |
LION ONE and IMAGIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LION ONE and IMAGIN MEDICAL
The main advantage of trading using opposite LION ONE and IMAGIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LION ONE position performs unexpectedly, IMAGIN 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 IMAGIN MEDICAL will offset losses from the drop in IMAGIN MEDICAL's long position.The idea behind LION ONE METALS and IMAGIN MEDICAL INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| IMAGIN MEDICAL vs. Jupiter Fund Management | IMAGIN MEDICAL vs. Urban Outfitters | IMAGIN MEDICAL vs. FORMPIPE SOFTWARE AB | IMAGIN MEDICAL vs. Cleanaway Waste Management |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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