Correlation Between CIMG and Guardian Pharmacy

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

By analyzing existing cross correlation between CIMG Inc and Guardian Pharmacy Services,, you can compare the effects of market volatilities on CIMG and Guardian Pharmacy 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 CIMG with a short position of Guardian Pharmacy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMG and Guardian Pharmacy.

Diversification Opportunities for CIMG and Guardian Pharmacy

0.04

Correlation Coefficient

CIMG  Guardian Pharmacy

Significant diversification

The 3 months correlation between CIMG and Guardian is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding CIMG Inc and Guardian Pharmacy Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Pharmacy and CIMG 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 CIMG Inc are associated (or correlated) with Guardian Pharmacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Pharmacy has no effect on the direction of CIMG i.e., CIMG and Guardian Pharmacy go up and down completely randomly.

Pair Corralation between CIMG and Guardian Pharmacy

Considering the 90-day investment horizon CIMG Inc is expected to generate 9.82 times more return on investment than Guardian Pharmacy. However, CIMG is 9.82 times more volatile than Guardian Pharmacy Services,. It trades about 0.05 of its potential returns per unit of risk. Guardian Pharmacy Services, is currently generating about 0.14 per unit of risk. If you would invest  340.00  in CIMG Inc on September 28, 2024 and sell it today you would lose (259.51) from holding CIMG Inc or give up 76.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	24.16%
Values	Daily Returns

CIMG Inc  vs.  Guardian Pharmacy Services,

CIMG Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CIMG Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating primary indicators, CIMG reported solid returns over the last few months and may actually be approaching a breakup point.

Guardian Pharmacy

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guardian Pharmacy Services, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Guardian Pharmacy displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CIMG and Guardian Pharmacy

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

The idea behind CIMG Inc and Guardian Pharmacy Services, 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.