Correlation Between EGF Theramed and Imaging Dynamics

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

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

Diversification Opportunities for EGF Theramed and Imaging Dynamics

-0.45

Correlation Coefficient

EGF Theramed  Imaging Dynamics

Very good diversification

The 3 months correlation between EGF and Imaging is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding EGF Theramed Health and Imaging Dynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imaging Dynamics and EGF Theramed 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 EGF Theramed Health are associated (or correlated) with Imaging Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imaging Dynamics has no effect on the direction of EGF Theramed i.e., EGF Theramed and Imaging Dynamics go up and down completely randomly.

Pair Corralation between EGF Theramed and Imaging Dynamics

Assuming the 90 days horizon EGF Theramed Health is expected to under-perform the Imaging Dynamics. But the pink sheet apears to be less risky and, when comparing its historical volatility, EGF Theramed Health is 3.42 times less risky than Imaging Dynamics. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Imaging Dynamics is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.93  in Imaging Dynamics on September 9, 2025 and sell it today you would earn a total of  1.42  from holding Imaging Dynamics or generate 152.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

EGF Theramed Health  vs.  Imaging Dynamics

EGF Theramed Health

Risk-Adjusted Performance

Weakest

Over the last 90 days EGF Theramed Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Imaging Dynamics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Imaging Dynamics are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating essential indicators, Imaging Dynamics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EGF Theramed and Imaging Dynamics

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

The idea behind EGF Theramed Health and Imaging Dynamics 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.

Check out your portfolio center.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.