Correlation Between IMedia Brands and IPower
Can any of the company-specific risk be diversified away by investing in both IMedia Brands and IPower 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 IMedia Brands and IPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMedia Brands and iPower Inc, you can compare the effects of market volatilities on IMedia Brands and IPower 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 IMedia Brands with a short position of IPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMedia Brands and IPower.
Diversification Opportunities for IMedia Brands and IPower
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IMedia and IPower is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMedia Brands and iPower Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iPower Inc and IMedia Brands 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 IMedia Brands are associated (or correlated) with IPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iPower Inc has no effect on the direction of IMedia Brands i.e., IMedia Brands and IPower go up and down completely randomly.
Pair Corralation between IMedia Brands and IPower
If you would invest 0.04 in IMedia Brands on January 20, 2024 and sell it today you would earn a total of 0.00 from holding IMedia Brands or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
IMedia Brands vs. iPower Inc
Performance |
Timeline |
IMedia Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
iPower Inc |
IMedia Brands and IPower Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IMedia Brands and IPower
The main advantage of trading using opposite IMedia Brands and IPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMedia Brands position performs unexpectedly, IPower 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 IPower will offset losses from the drop in IPower's long position.IMedia Brands vs. Janone Inc | IMedia Brands vs. Xcel Brands | IMedia Brands vs. FlexShopper | IMedia Brands vs. Monopar Therapeutics |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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