Correlation Between CHEMICAL INDUSTRIES and IMAGIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES and IMAGIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHEMICAL INDUSTRIES and IMAGIN MEDICAL INC, you can compare the effects of market volatilities on CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES with a short position of IMAGIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHEMICAL INDUSTRIES and IMAGIN MEDICAL.
Diversification Opportunities for CHEMICAL INDUSTRIES and IMAGIN MEDICAL
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHEMICAL and IMAGIN is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES i.e., CHEMICAL INDUSTRIES and IMAGIN MEDICAL go up and down completely randomly.
Pair Corralation between CHEMICAL INDUSTRIES and IMAGIN MEDICAL
Assuming the 90 days trading horizon CHEMICAL INDUSTRIES is expected to generate 1439.44 times less return on investment than IMAGIN MEDICAL. But when comparing it to its historical volatility, CHEMICAL INDUSTRIES is 494.68 times less risky than IMAGIN MEDICAL. It trades about 0.06 of its potential returns per unit of risk. IMAGIN MEDICAL INC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 9.04 in IMAGIN MEDICAL INC on October 13, 2024 and sell it today you would lose (8.99) from holding IMAGIN MEDICAL INC or give up 99.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHEMICAL INDUSTRIES vs. IMAGIN MEDICAL INC
Performance |
| Timeline |
| CHEMICAL INDUSTRIES |
| IMAGIN MEDICAL INC |
CHEMICAL INDUSTRIES and IMAGIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHEMICAL INDUSTRIES and IMAGIN MEDICAL
The main advantage of trading using opposite CHEMICAL INDUSTRIES and IMAGIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHEMICAL INDUSTRIES 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.| CHEMICAL INDUSTRIES vs. Ubisoft Entertainment SA | CHEMICAL INDUSTRIES vs. EIDESVIK OFFSHORE NK | CHEMICAL INDUSTRIES vs. Urban Outfitters | CHEMICAL INDUSTRIES vs. TOWNSQUARE MEDIA INC |
| IMAGIN MEDICAL vs. X FAB Silicon Foundries | IMAGIN MEDICAL vs. CHEMICAL INDUSTRIES | IMAGIN MEDICAL vs. X FAB Silicon Foundries | IMAGIN MEDICAL vs. TIANDE CHEMICAL |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stocks Directory Find actively traded stocks across global markets |