Correlation Between Traeger and Imperium Group

Can any of the company-specific risk be diversified away by investing in both Traeger and Imperium Group 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 Traeger and Imperium Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Traeger and Imperium Group Global, you can compare the effects of market volatilities on Traeger and Imperium Group 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 Traeger with a short position of Imperium Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Traeger and Imperium Group.

Diversification Opportunities for Traeger and Imperium Group

-0.69

Correlation Coefficient

Traeger  Imperium Group

Excellent diversification

The 3 months correlation between Traeger and Imperium is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Traeger and Imperium Group Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imperium Group Global and Traeger 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 Traeger are associated (or correlated) with Imperium Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imperium Group Global has no effect on the direction of Traeger i.e., Traeger and Imperium Group go up and down completely randomly.

Pair Corralation between Traeger and Imperium Group

Given the investment horizon of 90 days Traeger is expected to under-perform the Imperium Group. But the stock apears to be less risky and, when comparing its historical volatility, Traeger is 3.52 times less risky than Imperium Group. The stock trades about -0.06 of its potential returns per unit of risk. The Imperium Group Global is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  29.00  in Imperium Group Global on September 13, 2024 and sell it today you would earn a total of  28.00  from holding Imperium Group Global or generate 96.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Traeger  vs.  Imperium Group Global

Traeger

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Traeger has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Imperium Group Global

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Imperium Group Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting technical and fundamental indicators, Imperium Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Traeger and Imperium Group

The main advantage of trading using opposite Traeger and Imperium Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Traeger position performs unexpectedly, Imperium Group 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 Imperium Group will offset losses from the drop in Imperium Group's long position.

The idea behind Traeger and Imperium Group Global 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.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.