Correlation Between Claranova and Mediantechn
Can any of the company-specific risk be diversified away by investing in both Claranova 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 Claranova and Mediantechn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Claranova SE and Mediantechn, you can compare the effects of market volatilities on Claranova 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 Claranova with a short position of Mediantechn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Claranova and Mediantechn.
Diversification Opportunities for Claranova and Mediantechn
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Claranova and Mediantechn is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Claranova SE and Mediantechn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediantechn and Claranova 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 Claranova SE 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 Claranova i.e., Claranova and Mediantechn go up and down completely randomly.
Pair Corralation between Claranova and Mediantechn
Assuming the 90 days trading horizon Claranova SE is expected to under-perform the Mediantechn. But the stock apears to be less risky and, when comparing its historical volatility, Claranova SE is 1.66 times less risky than Mediantechn. The stock trades about -0.03 of its potential returns per unit of risk. The Mediantechn is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 884.00 in Mediantechn on September 19, 2024 and sell it today you would lose (519.00) from holding Mediantechn or give up 58.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Claranova SE vs. Mediantechn
Performance |
| Timeline |
| Claranova SE |
| Mediantechn |
Claranova and Mediantechn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Claranova and Mediantechn
The main advantage of trading using opposite Claranova and Mediantechn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Claranova 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.| Claranova vs. Solutions 30 SE | Claranova vs. BigBen Interactive | Claranova vs. SA Catana Group | Claranova vs. Solocal Group 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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