Correlation Between IMAGIN MEDICAL and Calibre Mining

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

Diversification Opportunities for IMAGIN MEDICAL and Calibre Mining

0.0

Correlation Coefficient

IMAGIN MEDICAL  Calibre Mining

Pay attention - limited upside

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

Pair Corralation between IMAGIN MEDICAL and Calibre Mining

Assuming the 90 days trading horizon IMAGIN MEDICAL INC is expected to generate 46.0 times more return on investment than Calibre Mining. However, IMAGIN MEDICAL is 46.0 times more volatile than Calibre Mining Corp. It trades about 0.14 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.06 per unit of risk. If you would invest  1.60  in IMAGIN MEDICAL INC on October 1, 2024 and sell it today you would lose (1.55) from holding IMAGIN MEDICAL INC or give up 96.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.66%
Values	Daily Returns

IMAGIN MEDICAL INC  vs.  Calibre Mining Corp

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

Calibre Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calibre Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with IMAGIN MEDICAL and Calibre Mining

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

The idea behind IMAGIN MEDICAL INC and Calibre Mining Corp 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.