Correlation Between More Mutual and Imed Infinity

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

By analyzing existing cross correlation between More Mutual Funds and Imed Infinity Medical Limited, you can compare the effects of market volatilities on More Mutual and Imed Infinity 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 More Mutual with a short position of Imed Infinity. Check out your portfolio center. Please also check ongoing floating volatility patterns of More Mutual and Imed Infinity.

Diversification Opportunities for More Mutual and Imed Infinity

-0.42

Correlation Coefficient

More Mutual  Imed Infinity

Very good diversification

The 3 months correlation between More and Imed is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding More Mutual Funds and Imed Infinity Medical Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imed Infinity Medical and More Mutual 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 More Mutual Funds are associated (or correlated) with Imed Infinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imed Infinity Medical has no effect on the direction of More Mutual i.e., More Mutual and Imed Infinity go up and down completely randomly.

Pair Corralation between More Mutual and Imed Infinity

Assuming the 90 days trading horizon More Mutual Funds is expected to generate 0.3 times more return on investment than Imed Infinity. However, More Mutual Funds is 3.29 times less risky than Imed Infinity. It trades about 0.08 of its potential returns per unit of risk. Imed Infinity Medical Limited is currently generating about 0.01 per unit of risk. If you would invest  500,000  in More Mutual Funds on October 11, 2024 and sell it today you would earn a total of  188,800  from holding More Mutual Funds or generate 37.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	80.99%
Values	Daily Returns

More Mutual Funds  vs.  Imed Infinity Medical Limited

More Mutual Funds

Risk-Adjusted Performance

36 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in More Mutual Funds are ranked lower than 36 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, More Mutual sustained solid returns over the last few months and may actually be approaching a breakup point.

Imed Infinity Medical

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Imed Infinity Medical Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Imed Infinity sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with More Mutual and Imed Infinity

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

The idea behind More Mutual Funds and Imed Infinity Medical Limited 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.