Correlation Between USWE SPORTS and MeVis Medical
Can any of the company-specific risk be diversified away by investing in both USWE SPORTS and MeVis Medical 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 USWE SPORTS and MeVis Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USWE SPORTS AB and MeVis Medical Solutions, you can compare the effects of market volatilities on USWE SPORTS and MeVis Medical 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 USWE SPORTS with a short position of MeVis Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of USWE SPORTS and MeVis Medical.
Diversification Opportunities for USWE SPORTS and MeVis Medical
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USWE and MeVis is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding USWE SPORTS AB and MeVis Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeVis Medical Solutions and USWE SPORTS 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 USWE SPORTS AB are associated (or correlated) with MeVis Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeVis Medical Solutions has no effect on the direction of USWE SPORTS i.e., USWE SPORTS and MeVis Medical go up and down completely randomly.
Pair Corralation between USWE SPORTS and MeVis Medical
Assuming the 90 days horizon USWE SPORTS AB is expected to generate 4.3 times more return on investment than MeVis Medical. However, USWE SPORTS is 4.3 times more volatile than MeVis Medical Solutions. It trades about 0.26 of its potential returns per unit of risk. MeVis Medical Solutions is currently generating about -0.06 per unit of risk. If you would invest 75.00 in USWE SPORTS AB on November 3, 2024 and sell it today you would earn a total of 11.00 from holding USWE SPORTS AB or generate 14.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
USWE SPORTS AB vs. MeVis Medical Solutions
Performance |
| Timeline |
| USWE SPORTS AB |
| MeVis Medical Solutions |
USWE SPORTS and MeVis Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USWE SPORTS and MeVis Medical
The main advantage of trading using opposite USWE SPORTS and MeVis Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USWE SPORTS position performs unexpectedly, MeVis Medical 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 MeVis Medical will offset losses from the drop in MeVis Medical's long position.| USWE SPORTS vs. OPKO HEALTH | USWE SPORTS vs. Planet Fitness | USWE SPORTS vs. OPERA SOFTWARE | USWE SPORTS vs. Phibro Animal Health |
| MeVis Medical vs. Siamgas And Petrochemicals | MeVis Medical vs. DAIDO METAL TD | MeVis Medical vs. Osisko Metals | MeVis Medical vs. Yuexiu Transport Infrastructure |
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 Stocks Directory module to find actively traded stocks across global markets.
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