Correlation Between Medical Properties and Cembra Money
Can any of the company-specific risk be diversified away by investing in both Medical Properties and Cembra Money 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 Medical Properties and Cembra Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust and Cembra Money Bank, you can compare the effects of market volatilities on Medical Properties and Cembra Money 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 Medical Properties with a short position of Cembra Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Cembra Money.
Diversification Opportunities for Medical Properties and Cembra Money
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Medical and Cembra is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and Cembra Money Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cembra Money Bank and Medical Properties 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 Medical Properties Trust are associated (or correlated) with Cembra Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cembra Money Bank has no effect on the direction of Medical Properties i.e., Medical Properties and Cembra Money go up and down completely randomly.
Pair Corralation between Medical Properties and Cembra Money
Assuming the 90 days trading horizon Medical Properties is expected to generate 1.1 times less return on investment than Cembra Money. In addition to that, Medical Properties is 5.12 times more volatile than Cembra Money Bank. It trades about 0.12 of its total potential returns per unit of risk. Cembra Money Bank is currently generating about 0.7 per unit of volatility. If you would invest 8,155 in Cembra Money Bank on October 22, 2024 and sell it today you would earn a total of 730.00 from holding Cembra Money Bank or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Medical Properties Trust vs. Cembra Money Bank
Performance |
| Timeline |
| Medical Properties Trust |
| Cembra Money Bank |
Medical Properties and Cembra Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Cembra Money
The main advantage of trading using opposite Medical Properties and Cembra Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, Cembra Money 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 Cembra Money will offset losses from the drop in Cembra Money's long position.| Medical Properties vs. One Media iP | Medical Properties vs. Flutter Entertainment PLC | Medical Properties vs. Zinc Media Group | Medical Properties vs. Liberty Media Corp |
| Cembra Money vs. Sunny Optical Technology | Cembra Money vs. International Biotechnology Trust | Cembra Money vs. Pfeiffer Vacuum Technology | Cembra Money vs. Alaska Air Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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