Correlation Between Image Protect and Pushfor Investments

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

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

Diversification Opportunities for Image Protect and Pushfor Investments

-0.37

Correlation Coefficient

Image Protect  Pushfor Investments

Very good diversification

The 3 months correlation between Image and Pushfor is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Image Protect and Pushfor Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pushfor Investments and Image Protect 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 Image Protect are associated (or correlated) with Pushfor Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pushfor Investments has no effect on the direction of Image Protect i.e., Image Protect and Pushfor Investments go up and down completely randomly.

Pair Corralation between Image Protect and Pushfor Investments

Given the investment horizon of 90 days Image Protect is expected to generate 13.28 times more return on investment than Pushfor Investments. However, Image Protect is 13.28 times more volatile than Pushfor Investments. It trades about 0.21 of its potential returns per unit of risk. Pushfor Investments is currently generating about 0.07 per unit of risk. If you would invest  0.02  in Image Protect on December 29, 2024 and sell it today you would lose (0.01) from holding Image Protect or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Image Protect  vs.  Pushfor Investments

Image Protect

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Image Protect are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Image Protect disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pushfor Investments

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pushfor Investments are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Pushfor Investments reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Image Protect and Pushfor Investments

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

The idea behind Image Protect and Pushfor 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.

Check out your portfolio center.

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 Global Correlations module to find global opportunities by holding instruments from different markets.