Correlation Between Imricor Medical and Ebr Systems

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

Diversification Opportunities for Imricor Medical and Ebr Systems

0.4

Correlation Coefficient

Imricor Medical  Ebr Systems

Very weak diversification

The 3 months correlation between Imricor and Ebr is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Imricor Medical Systems and Ebr Systems CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebr Systems CDR 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 Ebr Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebr Systems CDR has no effect on the direction of Imricor Medical i.e., Imricor Medical and Ebr Systems go up and down completely randomly.

Pair Corralation between Imricor Medical and Ebr Systems

Assuming the 90 days trading horizon Imricor Medical is expected to generate 1.45 times less return on investment than Ebr Systems. In addition to that, Imricor Medical is 1.06 times more volatile than Ebr Systems CDR. It trades about 0.16 of its total potential returns per unit of risk. Ebr Systems CDR is currently generating about 0.24 per unit of volatility. If you would invest  100.00  in Ebr Systems CDR on December 20, 2024 and sell it today you would earn a total of  89.00  from holding Ebr Systems CDR or generate 89.0% return on investment over 90 days.

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

Imricor Medical Systems  vs.  Ebr Systems CDR

Imricor Medical Systems

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Imricor Medical Systems are ranked lower than 12 (%) 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.

Ebr Systems CDR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ebr Systems CDR are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ebr Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Imricor Medical and Ebr Systems

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

The idea behind Imricor Medical Systems and Ebr Systems CDR 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.