Correlation Between Mediantechn and BEBO Health
Can any of the company-specific risk be diversified away by investing in both Mediantechn and BEBO Health 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 BEBO Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mediantechn and BEBO Health SA, you can compare the effects of market volatilities on Mediantechn and BEBO Health 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 BEBO Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mediantechn and BEBO Health.
Diversification Opportunities for Mediantechn and BEBO Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mediantechn and BEBO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mediantechn and BEBO Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEBO Health SA 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 BEBO Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEBO Health SA has no effect on the direction of Mediantechn i.e., Mediantechn and BEBO Health go up and down completely randomly.
Pair Corralation between Mediantechn and BEBO Health
Assuming the 90 days trading horizon Mediantechn is expected to generate 1.96 times more return on investment than BEBO Health. However, Mediantechn is 1.96 times more volatile than BEBO Health SA. It trades about 0.0 of its potential returns per unit of risk. BEBO Health SA is currently generating about -0.07 per unit of risk. If you would invest 756.00 in Mediantechn on November 2, 2024 and sell it today you would lose (401.00) from holding Mediantechn or give up 53.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.02% |
| Values | Daily Returns |
Mediantechn vs. BEBO Health SA
Performance |
| Timeline |
| Mediantechn |
| BEBO Health SA |
Mediantechn and BEBO Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mediantechn and BEBO Health
The main advantage of trading using opposite Mediantechn and BEBO Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mediantechn position performs unexpectedly, BEBO Health 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 BEBO Health will offset losses from the drop in BEBO Health's long position.| Mediantechn vs. Kalray SA | Mediantechn vs. Biosynex | Mediantechn vs. Eurobio Scientific SA | Mediantechn vs. OSE Pharma SA |
| BEBO Health vs. Gaztransport Technigaz SAS | BEBO Health vs. Les Hotels Bav | BEBO Health vs. Seche Environnem | BEBO Health vs. Metalliance SA |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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