Correlation Between Delcath Systems and Medigus
Can any of the company-specific risk be diversified away by investing in both Delcath Systems and Medigus 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 Delcath Systems and Medigus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delcath Systems and Medigus Ltd ADR, you can compare the effects of market volatilities on Delcath Systems and Medigus 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 Delcath Systems with a short position of Medigus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delcath Systems and Medigus.
Diversification Opportunities for Delcath Systems and Medigus
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Delcath and Medigus is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Delcath Systems and Medigus Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medigus Ltd ADR and Delcath Systems 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 Delcath Systems are associated (or correlated) with Medigus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medigus Ltd ADR has no effect on the direction of Delcath Systems i.e., Delcath Systems and Medigus go up and down completely randomly.
Pair Corralation between Delcath Systems and Medigus
Given the investment horizon of 90 days Delcath Systems is expected to generate 1.22 times more return on investment than Medigus. However, Delcath Systems is 1.22 times more volatile than Medigus Ltd ADR. It trades about 0.07 of its potential returns per unit of risk. Medigus Ltd ADR is currently generating about -0.04 per unit of risk. If you would invest 283.00 in Delcath Systems on August 26, 2024 and sell it today you would earn a total of 693.00 from holding Delcath Systems or generate 244.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.87% |
| Values | Daily Returns |
Delcath Systems vs. Medigus Ltd ADR
Performance |
| Timeline |
| Delcath Systems |
| Medigus Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Delcath Systems and Medigus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delcath Systems and Medigus
The main advantage of trading using opposite Delcath Systems and Medigus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delcath Systems position performs unexpectedly, Medigus 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 Medigus will offset losses from the drop in Medigus' long position.| Delcath Systems vs. Neuropace | Delcath Systems vs. SurModics | Delcath Systems vs. CVRx Inc | Delcath Systems vs. LivaNova PLC |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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