Correlation Between IMAGIN MEDICAL and Collins Foods

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

By analyzing existing cross correlation between IMAGIN MEDICAL INC and Collins Foods Limited, you can compare the effects of market volatilities on IMAGIN MEDICAL and Collins Foods 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 IMAGIN MEDICAL with a short position of Collins Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMAGIN MEDICAL and Collins Foods.

Diversification Opportunities for IMAGIN MEDICAL and Collins Foods

0.0

Correlation Coefficient

IMAGIN MEDICAL  Collins Foods

Pay attention - limited upside

The 3 months correlation between IMAGIN and Collins is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IMAGIN MEDICAL INC and Collins Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collins Foods Limited and IMAGIN MEDICAL 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 IMAGIN MEDICAL INC are associated (or correlated) with Collins Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collins Foods Limited has no effect on the direction of IMAGIN MEDICAL i.e., IMAGIN MEDICAL and Collins Foods go up and down completely randomly.

Pair Corralation between IMAGIN MEDICAL and Collins Foods

If you would invest  446.00  in Collins Foods Limited on April 23, 2025 and sell it today you would earn a total of  46.00  from holding Collins Foods Limited or generate 10.31% return on investment over 90 days.

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

IMAGIN MEDICAL INC  vs.  Collins Foods Limited

IMAGIN MEDICAL INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days IMAGIN MEDICAL INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, IMAGIN MEDICAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Collins Foods Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Collins Foods Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Collins Foods may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with IMAGIN MEDICAL and Collins Foods

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

The idea behind IMAGIN MEDICAL INC and Collins Foods Limited 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.