Correlation Between Imricor Medical and CSL

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

By analyzing existing cross correlation between Imricor Medical Systems and CSL, you can compare the effects of market volatilities on Imricor Medical and CSL 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 Imricor Medical with a short position of CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imricor Medical and CSL.

Diversification Opportunities for Imricor Medical and CSL

-0.49

Correlation Coefficient

Imricor Medical  CSL

Very good diversification

The 3 months correlation between Imricor and CSL is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Imricor Medical Systems and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL and Imricor 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 Imricor Medical Systems are associated (or correlated) with CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Imricor Medical i.e., Imricor Medical and CSL go up and down completely randomly.

Pair Corralation between Imricor Medical and CSL

Assuming the 90 days trading horizon Imricor Medical Systems is expected to generate 5.21 times more return on investment than CSL. However, Imricor Medical is 5.21 times more volatile than CSL. It trades about 0.09 of its potential returns per unit of risk. CSL is currently generating about 0.0 per unit of risk. If you would invest  27.00  in Imricor Medical Systems on October 21, 2024 and sell it today you would earn a total of  112.00  from holding Imricor Medical Systems or generate 414.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Imricor Medical Systems  vs.  CSL

Imricor Medical Systems

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Imricor Medical Systems are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Imricor Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

CSL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CSL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Imricor Medical and CSL

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

The idea behind Imricor Medical Systems and CSL 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.