Correlation Between FLOW TRADERS and IMAGIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both FLOW TRADERS 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 FLOW TRADERS and IMAGIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FLOW TRADERS LTD and IMAGIN MEDICAL INC, you can compare the effects of market volatilities on FLOW TRADERS 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 FLOW TRADERS with a short position of IMAGIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of FLOW TRADERS and IMAGIN MEDICAL.
Diversification Opportunities for FLOW TRADERS and IMAGIN MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FLOW and IMAGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FLOW TRADERS LTD 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 FLOW TRADERS 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 FLOW TRADERS LTD 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 FLOW TRADERS i.e., FLOW TRADERS and IMAGIN MEDICAL go up and down completely randomly.
Pair Corralation between FLOW TRADERS and IMAGIN MEDICAL
Assuming the 90 days horizon FLOW TRADERS is expected to generate 910.87 times less return on investment than IMAGIN MEDICAL. But when comparing it to its historical volatility, FLOW TRADERS LTD is 65.3 times less risky than IMAGIN MEDICAL. It trades about 0.01 of its potential returns per unit of risk. IMAGIN MEDICAL INC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 14.00 in IMAGIN MEDICAL INC on September 14, 2024 and sell it today you would lose (13.95) from holding IMAGIN MEDICAL INC or give up 99.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
FLOW TRADERS LTD vs. IMAGIN MEDICAL INC
Performance |
| Timeline |
| FLOW TRADERS LTD |
| IMAGIN MEDICAL INC |
FLOW TRADERS and IMAGIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FLOW TRADERS and IMAGIN MEDICAL
The main advantage of trading using opposite FLOW TRADERS and IMAGIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FLOW TRADERS 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.| FLOW TRADERS vs. Superior Plus Corp | FLOW TRADERS vs. SIVERS SEMICONDUCTORS AB | FLOW TRADERS vs. CHINA HUARONG ENERHD 50 | FLOW TRADERS vs. NORDIC HALIBUT AS |
| IMAGIN MEDICAL vs. Align Technology | IMAGIN MEDICAL vs. Superior Plus Corp | IMAGIN MEDICAL vs. SIVERS SEMICONDUCTORS AB | IMAGIN MEDICAL vs. Norsk Hydro ASA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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