Correlation Between IMAGIN MEDICAL and ELEMENT 29

Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and ELEMENT 29 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 IMAGIN MEDICAL and ELEMENT 29 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IMAGIN MEDICAL INC and ELEMENT 29 RESOURCES, you can compare the effects of market volatilities on IMAGIN MEDICAL and ELEMENT 29 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 IMAGIN MEDICAL with a short position of ELEMENT 29. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and ELEMENT 29.

Diversification Opportunities for IMAGIN MEDICAL and ELEMENT 29

0.0

Correlation Coefficient

IMAGIN MEDICAL  ELEMENT 29

Pay attention - limited upside

The 3 months correlation between IMAGIN and ELEMENT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and ELEMENT 29 RESOURCES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELEMENT 29 RESOURCES and IMAGIN MEDICAL 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 IMAGIN MEDICAL INC are associated (or correlated) with ELEMENT 29. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELEMENT 29 RESOURCES has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and ELEMENT 29 go up and down completely randomly.

Pair Corralation between IMAGIN MEDICAL and ELEMENT 29

Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 15.66 times more return on investment than ELEMENT 29. However, IMAGIN MEDICAL is 15.66 times more volatile than ELEMENT 29 RESOURCES. It trades about 0.17 of its potential returns per unit of risk. ELEMENT 29 RESOURCES is currently generating about 0.07 per unit of risk. If you would invest  10.00  in IMAGIN MEDICAL INC on October 26, 2024 and sell it today you would lose (9.95) from holding IMAGIN MEDICAL INC or give up 99.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

IMAGIN MEDICAL INC  vs.  ELEMENT 29 RESOURCES

IMAGIN MEDICAL INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IMAGIN MEDICAL INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, IMAGIN MEDICAL is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

ELEMENT 29 RESOURCES

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ELEMENT 29 RESOURCES are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ELEMENT 29 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IMAGIN MEDICAL and ELEMENT 29

The main advantage of trading using opposite IMAGIN MEDICAL and ELEMENT 29 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMAGIN MEDICAL position performs unexpectedly, ELEMENT 29 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 ELEMENT 29 will offset losses from the drop in ELEMENT 29's long position.

The idea behind IMAGIN MEDICAL INC and ELEMENT 29 RESOURCES 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.