Correlation Between IMAGIN MEDICAL and SEI INVESTMENTS

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

Diversification Opportunities for IMAGIN MEDICAL and SEI INVESTMENTS

0.0

Correlation Coefficient

IMAGIN MEDICAL  SEI INVESTMENTS

Pay attention - limited upside

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

Pair Corralation between IMAGIN MEDICAL and SEI INVESTMENTS

Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 127.3 times more return on investment than SEI INVESTMENTS. However, IMAGIN MEDICAL is 127.3 times more volatile than SEI INVESTMENTS. It trades about 0.14 of its potential returns per unit of risk. SEI INVESTMENTS is currently generating about 0.15 per unit of risk. If you would invest  0.05  in IMAGIN MEDICAL INC on October 5, 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	100.0%
Values	Daily Returns

IMAGIN MEDICAL INC  vs.  SEI INVESTMENTS

IMAGIN MEDICAL INC

Risk-Adjusted Performance

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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.

SEI INVESTMENTS

Risk-Adjusted Performance

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Solid

Over the last 90 days SEI INVESTMENTS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively uncertain basic indicators, SEI INVESTMENTS unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IMAGIN MEDICAL and SEI INVESTMENTS

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

The idea behind IMAGIN MEDICAL INC and SEI INVESTMENTS 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.