Correlation Between GWILLI FOOD and MeVis Medical
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and MeVis Medical 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 GWILLI FOOD and MeVis Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and MeVis Medical Solutions, you can compare the effects of market volatilities on GWILLI FOOD and MeVis Medical 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 GWILLI FOOD with a short position of MeVis Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and MeVis Medical.
Diversification Opportunities for GWILLI FOOD and MeVis Medical
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GWILLI and MeVis is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and MeVis Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeVis Medical Solutions and GWILLI FOOD 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 GWILLI FOOD are associated (or correlated) with MeVis Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeVis Medical Solutions has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and MeVis Medical go up and down completely randomly.
Pair Corralation between GWILLI FOOD and MeVis Medical
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 2.68 times more return on investment than MeVis Medical. However, GWILLI FOOD is 2.68 times more volatile than MeVis Medical Solutions. It trades about 0.05 of its potential returns per unit of risk. MeVis Medical Solutions is currently generating about 0.08 per unit of risk. If you would invest 1,530 in GWILLI FOOD on November 6, 2024 and sell it today you would earn a total of 20.00 from holding GWILLI FOOD or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GWILLI FOOD vs. MeVis Medical Solutions
Performance |
| Timeline |
| GWILLI FOOD |
| MeVis Medical Solutions |
GWILLI FOOD and MeVis Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and MeVis Medical
The main advantage of trading using opposite GWILLI FOOD and MeVis Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, MeVis Medical 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 MeVis Medical will offset losses from the drop in MeVis Medical's long position.| GWILLI FOOD vs. Siemens Healthineers AG | GWILLI FOOD vs. Constellation Software | GWILLI FOOD vs. PSI Software AG | GWILLI FOOD vs. UPDATE SOFTWARE |
| MeVis Medical vs. Gruppo Mutuionline SpA | MeVis Medical vs. Cal Maine Foods | MeVis Medical vs. YATRA ONLINE DL 0001 | MeVis Medical vs. SALESFORCE INC CDR |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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