Correlation Between Stella Jones and Imaflex
Can any of the company-specific risk be diversified away by investing in both Stella Jones and Imaflex 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 Stella Jones and Imaflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stella Jones and Imaflex, you can compare the effects of market volatilities on Stella Jones and Imaflex 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 Stella Jones with a short position of Imaflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stella Jones and Imaflex.
Diversification Opportunities for Stella Jones and Imaflex
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stella and Imaflex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stella Jones and Imaflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imaflex and Stella Jones 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 Stella Jones are associated (or correlated) with Imaflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imaflex has no effect on the direction of Stella Jones i.e., Stella Jones and Imaflex go up and down completely randomly.
Pair Corralation between Stella Jones and Imaflex
Assuming the 90 days horizon Stella Jones is expected to under-perform the Imaflex. In addition to that, Stella Jones is 1.15 times more volatile than Imaflex. It trades about -0.23 of its total potential returns per unit of risk. Imaflex is currently generating about -0.1 per unit of volatility. If you would invest 158.00 in Imaflex on August 30, 2024 and sell it today you would lose (11.00) from holding Imaflex or give up 6.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stella Jones vs. Imaflex
Performance |
| Timeline |
| Stella Jones |
| Imaflex |
Stella Jones and Imaflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stella Jones and Imaflex
The main advantage of trading using opposite Stella Jones and Imaflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stella Jones position performs unexpectedly, Imaflex 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 Imaflex will offset losses from the drop in Imaflex's long position.| Stella Jones vs. Richelieu Hardware | Stella Jones vs. CCL Industries | Stella Jones vs. Stantec | Stella Jones vs. Gildan Activewear |
| Imaflex vs. AirIQ Inc | Imaflex vs. NamSys Inc | Imaflex vs. Supremex | Imaflex vs. Atlas Engineered Products |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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