Correlation Between Blockchain Group and Medincell
Can any of the company-specific risk be diversified away by investing in both Blockchain Group and Medincell 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 Blockchain Group and Medincell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blockchain Group SA and Medincell SA, you can compare the effects of market volatilities on Blockchain Group and Medincell 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 Blockchain Group with a short position of Medincell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blockchain Group and Medincell.
Diversification Opportunities for Blockchain Group and Medincell
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blockchain and Medincell is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Group SA and Medincell SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medincell SA and Blockchain Group 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 Blockchain Group SA are associated (or correlated) with Medincell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medincell SA has no effect on the direction of Blockchain Group i.e., Blockchain Group and Medincell go up and down completely randomly.
Pair Corralation between Blockchain Group and Medincell
Assuming the 90 days trading horizon Blockchain Group SA is expected to generate 3.99 times more return on investment than Medincell. However, Blockchain Group is 3.99 times more volatile than Medincell SA. It trades about 0.33 of its potential returns per unit of risk. Medincell SA is currently generating about 0.31 per unit of risk. If you would invest 15.00 in Blockchain Group SA on August 30, 2024 and sell it today you would earn a total of 14.00 from holding Blockchain Group SA or generate 93.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Blockchain Group SA vs. Medincell SA
Performance |
| Timeline |
| Blockchain Group |
| Medincell SA |
Blockchain Group and Medincell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blockchain Group and Medincell
The main advantage of trading using opposite Blockchain Group and Medincell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blockchain Group position performs unexpectedly, Medincell 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 Medincell will offset losses from the drop in Medincell's long position.| Blockchain Group vs. Gaussin | Blockchain Group vs. Drone Volt SA | Blockchain Group vs. Amoeba SA | Blockchain Group vs. Gensight Biologics SA |
| Medincell vs. Gensight Biologics SA | Medincell vs. OSE Pharma SA | Medincell vs. Eurobio Scientific SA | Medincell vs. Abivax 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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