Correlation Between Medical Imaging and Gemtek Technology

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

By analyzing existing cross correlation between Medical Imaging and Gemtek Technology Co, you can compare the effects of market volatilities on Medical Imaging and Gemtek Technology 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 Medical Imaging with a short position of Gemtek Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Imaging and Gemtek Technology.

Diversification Opportunities for Medical Imaging and Gemtek Technology

-0.63

Correlation Coefficient

Medical Imaging  Gemtek Technology

Excellent diversification

The 3 months correlation between Medical and Gemtek is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Medical Imaging and Gemtek Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemtek Technology and Medical Imaging 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 Medical Imaging are associated (or correlated) with Gemtek Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemtek Technology has no effect on the direction of Medical Imaging i.e., Medical Imaging and Gemtek Technology go up and down completely randomly.

Pair Corralation between Medical Imaging and Gemtek Technology

Assuming the 90 days trading horizon Medical Imaging is expected to generate 1.97 times more return on investment than Gemtek Technology. However, Medical Imaging is 1.97 times more volatile than Gemtek Technology Co. It trades about 0.15 of its potential returns per unit of risk. Gemtek Technology Co is currently generating about -0.12 per unit of risk. If you would invest  7,300  in Medical Imaging on April 25, 2025 and sell it today you would earn a total of  2,350  from holding Medical Imaging or generate 32.19% return on investment over 90 days.

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

Medical Imaging  vs.  Gemtek Technology Co

Medical Imaging

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Medical Imaging are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Medical Imaging showed solid returns over the last few months and may actually be approaching a breakup point.

Gemtek Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gemtek Technology Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Medical Imaging and Gemtek Technology

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

The idea behind Medical Imaging and Gemtek Technology Co 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.