Correlation Between Ekinops SA and Mediantechn
Can any of the company-specific risk be diversified away by investing in both Ekinops SA and Mediantechn 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 Mediantechn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekinops SA and Mediantechn, you can compare the effects of market volatilities on Ekinops SA and Mediantechn 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 Mediantechn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekinops SA and Mediantechn.
Diversification Opportunities for Ekinops SA and Mediantechn
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ekinops and Mediantechn is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ekinops SA and Mediantechn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediantechn 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 Mediantechn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediantechn has no effect on the direction of Ekinops SA i.e., Ekinops SA and Mediantechn go up and down completely randomly.
Pair Corralation between Ekinops SA and Mediantechn
Assuming the 90 days trading horizon Ekinops SA is expected to under-perform the Mediantechn. But the stock apears to be less risky and, when comparing its historical volatility, Ekinops SA is 2.06 times less risky than Mediantechn. The stock trades about -0.03 of its potential returns per unit of risk. The Mediantechn is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 805.00 in Mediantechn on August 27, 2024 and sell it today you would lose (464.00) from holding Mediantechn or give up 57.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekinops SA vs. Mediantechn
Performance |
| Timeline |
| Ekinops SA |
| Mediantechn |
Ekinops SA and Mediantechn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekinops SA and Mediantechn
The main advantage of trading using opposite Ekinops SA and Mediantechn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekinops SA position performs unexpectedly, Mediantechn 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 Mediantechn will offset losses from the drop in Mediantechn's long position.| Ekinops SA vs. Sartorius Stedim Biotech | Ekinops SA vs. Lectra SA | Ekinops SA vs. Teleperformance SE | Ekinops SA vs. Trigano SA |
| Mediantechn vs. Kalray SA | Mediantechn vs. Biosynex | Mediantechn vs. Eurobio Scientific SA | Mediantechn vs. OSE Pharma 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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