Correlation Between Sequoia Financial and Imricor Medical

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

By analyzing existing cross correlation between Sequoia Financial Group and Imricor Medical Systems, you can compare the effects of market volatilities on Sequoia Financial and Imricor Medical 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 Sequoia Financial with a short position of Imricor Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sequoia Financial and Imricor Medical.

Diversification Opportunities for Sequoia Financial and Imricor Medical

0.05

Correlation Coefficient

Sequoia Financial  Imricor Medical

Significant diversification

The 3 months correlation between Sequoia and Imricor is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sequoia Financial Group and Imricor Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imricor Medical Systems and Sequoia Financial 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 Sequoia Financial Group are associated (or correlated) with Imricor Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imricor Medical Systems has no effect on the direction of Sequoia Financial i.e., Sequoia Financial and Imricor Medical go up and down completely randomly.

Pair Corralation between Sequoia Financial and Imricor Medical

Assuming the 90 days trading horizon Sequoia Financial Group is expected to generate 0.67 times more return on investment than Imricor Medical. However, Sequoia Financial Group is 1.5 times less risky than Imricor Medical. It trades about -0.01 of its potential returns per unit of risk. Imricor Medical Systems is currently generating about -0.06 per unit of risk. If you would invest  35.00  in Sequoia Financial Group on April 25, 2025 and sell it today you would lose (1.00) from holding Sequoia Financial Group or give up 2.86% of portfolio value over 90 days.

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

Sequoia Financial Group  vs.  Imricor Medical Systems

Sequoia Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sequoia Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Sequoia Financial is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Imricor Medical Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Imricor Medical Systems 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.

Pair Trading with Sequoia Financial and Imricor Medical

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

The idea behind Sequoia Financial Group and Imricor Medical Systems 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.