Correlation Between CIMG and Oriental Rise

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

By analyzing existing cross correlation between CIMG Inc and Oriental Rise Holdings, you can compare the effects of market volatilities on CIMG and Oriental Rise 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 CIMG with a short position of Oriental Rise. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMG and Oriental Rise.

Diversification Opportunities for CIMG and Oriental Rise

0.29

Correlation Coefficient

CIMG  Oriental Rise

Modest diversification

The 3 months correlation between CIMG and Oriental is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding CIMG Inc and Oriental Rise Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Rise Holdings and CIMG 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 CIMG Inc are associated (or correlated) with Oriental Rise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Rise Holdings has no effect on the direction of CIMG i.e., CIMG and Oriental Rise go up and down completely randomly.

Pair Corralation between CIMG and Oriental Rise

Considering the 90-day investment horizon CIMG Inc is expected to generate 7.86 times more return on investment than Oriental Rise. However, CIMG is 7.86 times more volatile than Oriental Rise Holdings. It trades about 0.09 of its potential returns per unit of risk. Oriental Rise Holdings is currently generating about 0.07 per unit of risk. If you would invest  130.00  in CIMG Inc on September 4, 2024 and sell it today you would lose (46.00) from holding CIMG Inc or give up 35.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	51.56%
Values	Daily Returns

CIMG Inc  vs.  Oriental Rise Holdings

CIMG Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CIMG Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal primary indicators, CIMG reported solid returns over the last few months and may actually be approaching a breakup point.

Oriental Rise Holdings

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oriental Rise Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal forward indicators, Oriental Rise unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CIMG and Oriental Rise

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

The idea behind CIMG Inc and Oriental Rise Holdings 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.