Correlation Between AECOM and MeVis Medical
Can any of the company-specific risk be diversified away by investing in both AECOM 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 AECOM and MeVis Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AECOM and MeVis Medical Solutions, you can compare the effects of market volatilities on AECOM 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 AECOM with a short position of MeVis Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM and MeVis Medical.
Diversification Opportunities for AECOM and MeVis Medical
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AECOM and MeVis is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding AECOM 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 AECOM 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 AECOM 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 AECOM i.e., AECOM and MeVis Medical go up and down completely randomly.
Pair Corralation between AECOM and MeVis Medical
Assuming the 90 days horizon AECOM is expected to generate 1.17 times more return on investment than MeVis Medical. However, AECOM is 1.17 times more volatile than MeVis Medical Solutions. It trades about 0.07 of its potential returns per unit of risk. MeVis Medical Solutions is currently generating about -0.03 per unit of risk. If you would invest 7,635 in AECOM on August 31, 2024 and sell it today you would earn a total of 3,365 from holding AECOM or generate 44.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
AECOM vs. MeVis Medical Solutions
Performance |
| Timeline |
| AECOM |
| MeVis Medical Solutions |
AECOM and MeVis Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AECOM and MeVis Medical
The main advantage of trading using opposite AECOM and MeVis Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECOM 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.| AECOM vs. MeVis Medical Solutions | AECOM vs. SAFETY MEDICAL PROD | AECOM vs. TreeHouse Foods | AECOM vs. Performance Food Group |
| MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |