Correlation Between Mediantechn and Acticor Biotech
Can any of the company-specific risk be diversified away by investing in both Mediantechn and Acticor Biotech 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 Mediantechn and Acticor Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mediantechn and Acticor Biotech SAS, you can compare the effects of market volatilities on Mediantechn and Acticor Biotech 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 Mediantechn with a short position of Acticor Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mediantechn and Acticor Biotech.
Diversification Opportunities for Mediantechn and Acticor Biotech
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mediantechn and Acticor is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mediantechn and Acticor Biotech SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acticor Biotech SAS and Mediantechn 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 Mediantechn are associated (or correlated) with Acticor Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acticor Biotech SAS has no effect on the direction of Mediantechn i.e., Mediantechn and Acticor Biotech go up and down completely randomly.
Pair Corralation between Mediantechn and Acticor Biotech
Assuming the 90 days trading horizon Mediantechn is expected to generate 1.05 times more return on investment than Acticor Biotech. However, Mediantechn is 1.05 times more volatile than Acticor Biotech SAS. It trades about -0.18 of its potential returns per unit of risk. Acticor Biotech SAS is currently generating about -0.27 per unit of risk. If you would invest 425.00 in Mediantechn on September 14, 2024 and sell it today you would lose (80.00) from holding Mediantechn or give up 18.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mediantechn vs. Acticor Biotech SAS
Performance |
| Timeline |
| Mediantechn |
| Acticor Biotech SAS |
Mediantechn and Acticor Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mediantechn and Acticor Biotech
The main advantage of trading using opposite Mediantechn and Acticor Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mediantechn position performs unexpectedly, Acticor Biotech 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 Acticor Biotech will offset losses from the drop in Acticor Biotech's long position.| Mediantechn vs. Gensight Biologics SA | Mediantechn vs. Innate Pharma | Mediantechn vs. Poxel SA | Mediantechn vs. Nanobiotix SA |
| Acticor Biotech vs. Eutelsat Communications SA | Acticor Biotech vs. Fiducial Office Solutions | Acticor Biotech vs. Pullup Entertainment Socit | Acticor Biotech vs. Mediantechn |
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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