Correlation Between IMAGIN MEDICAL and Pentair Plc

Can any of the company-specific risk be diversified away by investing in both IMAGIN MEDICAL and Pentair Plc 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 Pentair Plc 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 Pentair plc, you can compare the effects of market volatilities on IMAGIN MEDICAL and Pentair Plc 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 Pentair Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and Pentair Plc.

Diversification Opportunities for IMAGIN MEDICAL and Pentair Plc

0.0

Correlation Coefficient

IMAGIN MEDICAL  Pentair Plc

Pay attention - limited upside

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

Pair Corralation between IMAGIN MEDICAL and Pentair Plc

If you would invest  0.05  in IMAGIN MEDICAL INC on December 30, 2024 and sell it today you would earn a total of  0.00  from holding IMAGIN MEDICAL INC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

IMAGIN MEDICAL INC  vs.  Pentair plc

IMAGIN MEDICAL INC

Risk-Adjusted Performance

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pentair plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Pentair plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with IMAGIN MEDICAL and Pentair Plc

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

The idea behind IMAGIN MEDICAL INC and Pentair plc 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.