Correlation Between Sogeclair and Mediantechn
Can any of the company-specific risk be diversified away by investing in both Sogeclair and Mediantechn 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 Sogeclair and Mediantechn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sogeclair SA and Mediantechn, you can compare the effects of market volatilities on Sogeclair and Mediantechn 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 Sogeclair with a short position of Mediantechn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sogeclair and Mediantechn.
Diversification Opportunities for Sogeclair and Mediantechn
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sogeclair and Mediantechn is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sogeclair SA and Mediantechn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediantechn and Sogeclair 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 Sogeclair SA are associated (or correlated) with Mediantechn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediantechn has no effect on the direction of Sogeclair i.e., Sogeclair and Mediantechn go up and down completely randomly.
Pair Corralation between Sogeclair and Mediantechn
Assuming the 90 days trading horizon Sogeclair SA is expected to generate 0.33 times more return on investment than Mediantechn. However, Sogeclair SA is 3.07 times less risky than Mediantechn. It trades about 0.17 of its potential returns per unit of risk. Mediantechn is currently generating about -0.14 per unit of risk. If you would invest 1,705 in Sogeclair SA on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Sogeclair SA or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sogeclair SA vs. Mediantechn
Performance |
| Timeline |
| Sogeclair SA |
| Mediantechn |
Sogeclair and Mediantechn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sogeclair and Mediantechn
The main advantage of trading using opposite Sogeclair and Mediantechn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sogeclair position performs unexpectedly, Mediantechn 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 Mediantechn will offset losses from the drop in Mediantechn's long position.| Sogeclair vs. LVMH Mot Hennessy | Sogeclair vs. LOreal SA | Sogeclair vs. Hermes International SCA | Sogeclair vs. Manitou BF SA |
| Mediantechn vs. Kalray SA | Mediantechn vs. Biosynex | Mediantechn vs. Eurobio Scientific SA | Mediantechn vs. OSE Pharma 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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