Correlation Between MEDICAL FACILITIES and SCANDMEDICAL SOLDK-040
Can any of the company-specific risk be diversified away by investing in both MEDICAL FACILITIES and SCANDMEDICAL SOLDK-040 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 FACILITIES and SCANDMEDICAL SOLDK-040 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICAL FACILITIES NEW and SCANDMEDICAL SOLDK 040, you can compare the effects of market volatilities on MEDICAL FACILITIES and SCANDMEDICAL SOLDK-040 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 FACILITIES with a short position of SCANDMEDICAL SOLDK-040. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICAL FACILITIES and SCANDMEDICAL SOLDK-040.
Diversification Opportunities for MEDICAL FACILITIES and SCANDMEDICAL SOLDK-040
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MEDICAL and SCANDMEDICAL is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding MEDICAL FACILITIES NEW and SCANDMEDICAL SOLDK 040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDMEDICAL SOLDK 040 and MEDICAL FACILITIES 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 FACILITIES NEW are associated (or correlated) with SCANDMEDICAL SOLDK-040. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDMEDICAL SOLDK 040 has no effect on the direction of MEDICAL FACILITIES i.e., MEDICAL FACILITIES and SCANDMEDICAL SOLDK-040 go up and down completely randomly.
Pair Corralation between MEDICAL FACILITIES and SCANDMEDICAL SOLDK-040
Assuming the 90 days horizon MEDICAL FACILITIES NEW is expected to generate 1.13 times more return on investment than SCANDMEDICAL SOLDK-040. However, MEDICAL FACILITIES is 1.13 times more volatile than SCANDMEDICAL SOLDK 040. It trades about 0.11 of its potential returns per unit of risk. SCANDMEDICAL SOLDK 040 is currently generating about -0.02 per unit of risk. If you would invest 639.00 in MEDICAL FACILITIES NEW on August 27, 2024 and sell it today you would earn a total of 441.00 from holding MEDICAL FACILITIES NEW or generate 69.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDICAL FACILITIES NEW vs. SCANDMEDICAL SOLDK 040
Performance |
| Timeline |
| MEDICAL FACILITIES NEW |
| SCANDMEDICAL SOLDK 040 |
MEDICAL FACILITIES and SCANDMEDICAL SOLDK-040 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICAL FACILITIES and SCANDMEDICAL SOLDK-040
The main advantage of trading using opposite MEDICAL FACILITIES and SCANDMEDICAL SOLDK-040 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICAL FACILITIES position performs unexpectedly, SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 will offset losses from the drop in SCANDMEDICAL SOLDK-040's long position.| MEDICAL FACILITIES vs. Ramsay Health Care | MEDICAL FACILITIES vs. Superior Plus Corp | MEDICAL FACILITIES vs. NMI Holdings | MEDICAL FACILITIES vs. Origin Agritech |
| SCANDMEDICAL SOLDK-040 vs. Superior Plus Corp | SCANDMEDICAL SOLDK-040 vs. NMI Holdings | SCANDMEDICAL SOLDK-040 vs. Origin Agritech | SCANDMEDICAL SOLDK-040 vs. SIVERS SEMICONDUCTORS AB |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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