Correlation Between Star Equity and Imagion Biosystems
Can any of the company-specific risk be diversified away by investing in both Star Equity and Imagion Biosystems 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 Star Equity and Imagion Biosystems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Equity Holdings and Imagion Biosystems Limited, you can compare the effects of market volatilities on Star Equity and Imagion Biosystems 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 Star Equity with a short position of Imagion Biosystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Equity and Imagion Biosystems.
Diversification Opportunities for Star Equity and Imagion Biosystems
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Star and Imagion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Star Equity Holdings and Imagion Biosystems Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imagion Biosystems and Star Equity 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 Star Equity Holdings are associated (or correlated) with Imagion Biosystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imagion Biosystems has no effect on the direction of Star Equity i.e., Star Equity and Imagion Biosystems go up and down completely randomly.
Pair Corralation between Star Equity and Imagion Biosystems
Given the investment horizon of 90 days Star Equity Holdings is expected to generate 0.51 times more return on investment than Imagion Biosystems. However, Star Equity Holdings is 1.97 times less risky than Imagion Biosystems. It trades about -0.07 of its potential returns per unit of risk. Imagion Biosystems Limited is currently generating about -0.09 per unit of risk. If you would invest 415.00 in Star Equity Holdings on September 12, 2024 and sell it today you would lose (142.00) from holding Star Equity Holdings or give up 34.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Equity Holdings vs. Imagion Biosystems Limited
Performance |
| Timeline |
| Star Equity Holdings |
| Imagion Biosystems |
Star Equity and Imagion Biosystems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Equity and Imagion Biosystems
The main advantage of trading using opposite Star Equity and Imagion Biosystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Equity position performs unexpectedly, Imagion Biosystems 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 Imagion Biosystems will offset losses from the drop in Imagion Biosystems' long position.| Star Equity vs. Burning Rock Biotech | Star Equity vs. Neuronetics | Star Equity vs. Sera Prognostics | Star Equity vs. Fonar |
| Imagion Biosystems vs. Psychemedics | Imagion Biosystems vs. Sera Prognostics | Imagion Biosystems vs. DarioHealth Corp | Imagion Biosystems vs. Rushnet |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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