Correlation Between Boule Diagnostics and Image Systems

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

By analyzing existing cross correlation between Boule Diagnostics AB and Image Systems AB, you can compare the effects of market volatilities on Boule Diagnostics and Image Systems 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 Boule Diagnostics with a short position of Image Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boule Diagnostics and Image Systems.

Diversification Opportunities for Boule Diagnostics and Image Systems

-0.09

Correlation Coefficient

Boule Diagnostics  Image Systems

Good diversification

The 3 months correlation between Boule and Image is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Boule Diagnostics AB and Image Systems AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Image Systems AB and Boule Diagnostics 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 Boule Diagnostics AB are associated (or correlated) with Image Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Image Systems AB has no effect on the direction of Boule Diagnostics i.e., Boule Diagnostics and Image Systems go up and down completely randomly.

Pair Corralation between Boule Diagnostics and Image Systems

Assuming the 90 days trading horizon Boule Diagnostics AB is expected to under-perform the Image Systems. In addition to that, Boule Diagnostics is 1.72 times more volatile than Image Systems AB. It trades about -0.04 of its total potential returns per unit of risk. Image Systems AB is currently generating about -0.05 per unit of volatility. If you would invest  218.00  in Image Systems AB on April 21, 2025 and sell it today you would lose (24.00) from holding Image Systems AB or give up 11.01% of portfolio value over 90 days.

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

Boule Diagnostics AB  vs.  Image Systems AB

Boule Diagnostics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Boule Diagnostics AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Image Systems AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Image Systems AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Boule Diagnostics and Image Systems

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

The idea behind Boule Diagnostics AB and Image Systems AB 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.