Correlation Between Medigen Biotechnology and CVC Technologies
Can any of the company-specific risk be diversified away by investing in both Medigen Biotechnology and CVC Technologies 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 Medigen Biotechnology and CVC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medigen Biotechnology and CVC Technologies, you can compare the effects of market volatilities on Medigen Biotechnology and CVC Technologies 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 Medigen Biotechnology with a short position of CVC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medigen Biotechnology and CVC Technologies.
Diversification Opportunities for Medigen Biotechnology and CVC Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Medigen and CVC is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Medigen Biotechnology and CVC Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVC Technologies and Medigen Biotechnology 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 Medigen Biotechnology are associated (or correlated) with CVC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVC Technologies has no effect on the direction of Medigen Biotechnology i.e., Medigen Biotechnology and CVC Technologies go up and down completely randomly.
Pair Corralation between Medigen Biotechnology and CVC Technologies
Assuming the 90 days trading horizon Medigen Biotechnology is expected to generate 1.03 times more return on investment than CVC Technologies. However, Medigen Biotechnology is 1.03 times more volatile than CVC Technologies. It trades about 0.01 of its potential returns per unit of risk. CVC Technologies is currently generating about -0.02 per unit of risk. If you would invest 3,210 in Medigen Biotechnology on November 1, 2024 and sell it today you would earn a total of 65.00 from holding Medigen Biotechnology or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Medigen Biotechnology vs. CVC Technologies
Performance |
| Timeline |
| Medigen Biotechnology |
| CVC Technologies |
Medigen Biotechnology and CVC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medigen Biotechnology and CVC Technologies
The main advantage of trading using opposite Medigen Biotechnology and CVC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medigen Biotechnology position performs unexpectedly, CVC Technologies 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 CVC Technologies will offset losses from the drop in CVC Technologies' long position.| Medigen Biotechnology vs. CHC Healthcare Group | Medigen Biotechnology vs. GenMont Biotech | Medigen Biotechnology vs. Sinphar Pharmaceutical Co | Medigen Biotechnology vs. Abnova Taiwan Corp |
| CVC Technologies vs. Jia Jie Biomedical | CVC Technologies vs. Dynamic Medical Technologies | CVC Technologies vs. Tehmag Foods | CVC Technologies vs. FarGlory Hotel Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |