Correlation Between Medicover and Ramsay Générale
Can any of the company-specific risk be diversified away by investing in both Medicover and Ramsay Générale 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 Medicover and Ramsay Générale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medicover AB and Ramsay Gnrale de, you can compare the effects of market volatilities on Medicover and Ramsay Générale 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 Medicover with a short position of Ramsay Générale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medicover and Ramsay Générale.
Diversification Opportunities for Medicover and Ramsay Générale
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Medicover and Ramsay is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Medicover AB and Ramsay Gnrale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Gnrale de and Medicover 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 Medicover AB are associated (or correlated) with Ramsay Générale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Gnrale de has no effect on the direction of Medicover i.e., Medicover and Ramsay Générale go up and down completely randomly.
Pair Corralation between Medicover and Ramsay Générale
Assuming the 90 days trading horizon Medicover AB is expected to under-perform the Ramsay Générale. But the stock apears to be less risky and, when comparing its historical volatility, Medicover AB is 3.03 times less risky than Ramsay Générale. The stock trades about -0.4 of its potential returns per unit of risk. The Ramsay Gnrale de is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,235 in Ramsay Gnrale de on August 24, 2024 and sell it today you would lose (80.00) from holding Ramsay Gnrale de or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medicover AB vs. Ramsay Gnrale de
Performance |
| Timeline |
| Medicover AB |
| Ramsay Gnrale de |
Medicover and Ramsay Générale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medicover and Ramsay Générale
The main advantage of trading using opposite Medicover and Ramsay Générale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medicover position performs unexpectedly, Ramsay Générale 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 Ramsay Générale will offset losses from the drop in Ramsay Générale's long position.| Medicover vs. DOCDATA | Medicover vs. Data3 Limited | Medicover vs. JAPAN AIRLINES | Medicover vs. Aegean Airlines SA |
| Ramsay Générale vs. KENEDIX OFFICE INV | Ramsay Générale vs. SEI INVESTMENTS | Ramsay Générale vs. CDL INVESTMENT | Ramsay Générale vs. Apollo Investment Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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