Correlation Between CSL and MedinCell
Can any of the company-specific risk be diversified away by investing in both CSL 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 CSL and MedinCell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSL and MedinCell SA, you can compare the effects of market volatilities on CSL 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 CSL with a short position of MedinCell. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and MedinCell.
Diversification Opportunities for CSL and MedinCell
Poor diversification
The 3 months correlation between CSL and MedinCell is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding CSL and MedinCell SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MedinCell SA and CSL 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 CSL 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 CSL i.e., CSL and MedinCell go up and down completely randomly.
Pair Corralation between CSL and MedinCell
Assuming the 90 days horizon CSL is expected to generate 36.3 times less return on investment than MedinCell. But when comparing it to its historical volatility, CSL is 37.22 times less risky than MedinCell. It trades about 0.13 of its potential returns per unit of risk. MedinCell SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 698.00 in MedinCell SA on November 7, 2025 and sell it today you would earn a total of 2,741 from holding MedinCell SA or generate 392.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSL vs. MedinCell SA
Performance |
| Timeline |
| CSL |
| MedinCell SA |
CSL and MedinCell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSL and MedinCell
The main advantage of trading using opposite CSL and MedinCell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL 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.The idea behind CSL and MedinCell SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MedinCell vs. BioInvent International AB | MedinCell vs. Avacta Group Plc | MedinCell vs. Healios KK | MedinCell vs. PureTech Health plc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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