Correlation Between Imperium Group and Traeger

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

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

Diversification Opportunities for Imperium Group and Traeger

0.72

Correlation Coefficient

Imperium Group  Traeger

Poor diversification

The 3 months correlation between Imperium and Traeger is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Imperium Group Global and Traeger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traeger and Imperium Group 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 Imperium Group Global are associated (or correlated) with Traeger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traeger has no effect on the direction of Imperium Group i.e., Imperium Group and Traeger go up and down completely randomly.

Pair Corralation between Imperium Group and Traeger

Assuming the 90 days horizon Imperium Group Global is expected to under-perform the Traeger. In addition to that, Imperium Group is 2.47 times more volatile than Traeger. It trades about -0.15 of its total potential returns per unit of risk. Traeger is currently generating about -0.18 per unit of volatility. If you would invest  240.00  in Traeger on December 27, 2024 and sell it today you would lose (69.00) from holding Traeger or give up 28.75% of portfolio value over 90 days.

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

Imperium Group Global  vs.  Traeger

Imperium Group Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Imperium Group Global has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Traeger

Risk-Adjusted Performance

Very Weak

Over the last 90 days Traeger has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Imperium Group and Traeger

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

The idea behind Imperium Group Global and Traeger 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..