Correlation Between Ekinops SA and Diagnostic Medical
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Diagnostic 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 Ekinops SA and Diagnostic Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Diagnostic Medical Systems, you can compare the effects of market volatilities on Ekinops SA and Diagnostic 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 Ekinops SA with a short position of Diagnostic Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Diagnostic Medical.
Diversification Opportunities for Ekinops SA and Diagnostic Medical
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekinops and Diagnostic is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Diagnostic Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diagnostic Medical and Ekinops SA 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 Ekinops SA are associated (or correlated) with Diagnostic Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diagnostic Medical has no effect on the direction of Ekinops SA i.e., Ekinops SA and Diagnostic Medical go up and down completely randomly.
Pair Corralation between Ekinops SA and Diagnostic Medical
Assuming the 90 days trading horizon Ekinops SA is expected to generate 0.52 times more return on investment than Diagnostic Medical. However, Ekinops SA is 1.91 times less risky than Diagnostic Medical. It trades about -0.12 of its potential returns per unit of risk. Diagnostic Medical Systems is currently generating about -0.11 per unit of risk. If you would invest 406.00 in Ekinops SA on August 30, 2024 and sell it today you would lose (47.00) from holding Ekinops SA or give up 11.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Diagnostic Medical Systems
Performance |
| Timeline |
| Ekinops SA |
| Diagnostic Medical |
Ekinops SA and Diagnostic Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Diagnostic Medical
The main advantage of trading using opposite Ekinops SA and Diagnostic Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Diagnostic 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 Diagnostic Medical will offset losses from the drop in Diagnostic Medical's long position.| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
| Diagnostic Medical vs. Hydrogene De France | Diagnostic Medical vs. Manitou BF SA | Diagnostic Medical vs. Ossiam Minimum Variance | Diagnostic Medical vs. Ekinops 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |