Correlation Between Image Systems and Boule Diagnostics

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

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

Diversification Opportunities for Image Systems and Boule Diagnostics

-0.09

Correlation Coefficient

Image Systems  Boule Diagnostics

Good diversification

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

Pair Corralation between Image Systems and Boule Diagnostics

Assuming the 90 days horizon Image Systems AB is expected to generate 0.59 times more return on investment than Boule Diagnostics. However, Image Systems AB is 1.71 times less risky than Boule Diagnostics. It trades about -0.06 of its potential returns per unit of risk. Boule Diagnostics AB is currently generating about -0.05 per unit of risk. If you would invest  218.00  in Image Systems AB on April 22, 2025 and sell it today you would lose (31.00) from holding Image Systems AB or give up 14.22% of portfolio value over 90 days.

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

Image Systems AB  vs.  Boule Diagnostics AB

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 uncertain 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.

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.

Pair Trading with Image Systems and Boule Diagnostics

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

The idea behind Image Systems AB and Boule Diagnostics 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.