Correlation Between ISpecimen and Moving IMage

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

By analyzing existing cross correlation between iSpecimen and Moving iMage Technologies, you can compare the effects of market volatilities on ISpecimen and Moving IMage 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 ISpecimen with a short position of Moving IMage. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISpecimen and Moving IMage.

Diversification Opportunities for ISpecimen and Moving IMage

-0.54

Correlation Coefficient

ISpecimen  Moving IMage

Excellent diversification

The 3 months correlation between ISpecimen and Moving is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding iSpecimen and Moving iMage Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moving iMage Technologies and ISpecimen 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 iSpecimen are associated (or correlated) with Moving IMage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moving iMage Technologies has no effect on the direction of ISpecimen i.e., ISpecimen and Moving IMage go up and down completely randomly.

Pair Corralation between ISpecimen and Moving IMage

Given the investment horizon of 90 days iSpecimen is expected to under-perform the Moving IMage. But the stock apears to be less risky and, when comparing its historical volatility, iSpecimen is 1.89 times less risky than Moving IMage. The stock trades about -0.03 of its potential returns per unit of risk. The Moving iMage Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  55.00  in Moving iMage Technologies on April 30, 2025 and sell it today you would earn a total of  22.00  from holding Moving iMage Technologies or generate 40.0% return on investment over 90 days.

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

iSpecimen  vs.  Moving iMage Technologies

iSpecimen

Risk-Adjusted Performance

Very Weak

Over the last 90 days iSpecimen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Moving iMage Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Moving iMage Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Moving IMage reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ISpecimen and Moving IMage

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

The idea behind iSpecimen and Moving iMage Technologies 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.