Correlation Between AiMedia Technologies and Telix Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both AiMedia Technologies and Telix Pharmaceuticals 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 AiMedia Technologies and Telix Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AiMedia Technologies and Telix Pharmaceuticals, you can compare the effects of market volatilities on AiMedia Technologies and Telix Pharmaceuticals 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 AiMedia Technologies with a short position of Telix Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of AiMedia Technologies and Telix Pharmaceuticals.
Diversification Opportunities for AiMedia Technologies and Telix Pharmaceuticals
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AiMedia and Telix is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding AiMedia Technologies and Telix Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telix Pharmaceuticals and AiMedia Technologies 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 AiMedia Technologies are associated (or correlated) with Telix Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telix Pharmaceuticals has no effect on the direction of AiMedia Technologies i.e., AiMedia Technologies and Telix Pharmaceuticals go up and down completely randomly.
Pair Corralation between AiMedia Technologies and Telix Pharmaceuticals
Assuming the 90 days trading horizon AiMedia Technologies is expected to generate 2.13 times more return on investment than Telix Pharmaceuticals. However, AiMedia Technologies is 2.13 times more volatile than Telix Pharmaceuticals. It trades about 0.27 of its potential returns per unit of risk. Telix Pharmaceuticals is currently generating about 0.2 per unit of risk. If you would invest 74.00 in AiMedia Technologies on September 25, 2024 and sell it today you would earn a total of 17.00 from holding AiMedia Technologies or generate 22.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
AiMedia Technologies vs. Telix Pharmaceuticals
Performance |
Timeline |
AiMedia Technologies |
Telix Pharmaceuticals |
AiMedia Technologies and Telix Pharmaceuticals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AiMedia Technologies and Telix Pharmaceuticals
The main advantage of trading using opposite AiMedia Technologies and Telix Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AiMedia Technologies position performs unexpectedly, Telix Pharmaceuticals 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 Telix Pharmaceuticals will offset losses from the drop in Telix Pharmaceuticals' long position.AiMedia Technologies vs. Chalice Mining Limited | AiMedia Technologies vs. Retail Food Group | AiMedia Technologies vs. Autosports Group | AiMedia Technologies vs. Spirit Telecom |
Telix Pharmaceuticals vs. Navigator Global Investments | Telix Pharmaceuticals vs. Diversified United Investment | Telix Pharmaceuticals vs. AiMedia Technologies | Telix Pharmaceuticals vs. Steamships Trading |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Transaction History View history of all your transactions and understand their impact on performance | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |