Correlation Between Ekopak BV and Sequana Medical
Can any of the company-specific risk be diversified away by investing in both Ekopak BV and Sequana 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 Ekopak BV and Sequana Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekopak BV and Sequana Medical NV, you can compare the effects of market volatilities on Ekopak BV and Sequana 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 Ekopak BV with a short position of Sequana Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekopak BV and Sequana Medical.
Diversification Opportunities for Ekopak BV and Sequana Medical
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ekopak and Sequana is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ekopak BV and Sequana Medical NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sequana Medical NV and Ekopak BV 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 Ekopak BV are associated (or correlated) with Sequana Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sequana Medical NV has no effect on the direction of Ekopak BV i.e., Ekopak BV and Sequana Medical go up and down completely randomly.
Pair Corralation between Ekopak BV and Sequana Medical
Assuming the 90 days trading horizon Ekopak BV is expected to generate 0.26 times more return on investment than Sequana Medical. However, Ekopak BV is 3.84 times less risky than Sequana Medical. It trades about -0.09 of its potential returns per unit of risk. Sequana Medical NV is currently generating about -0.07 per unit of risk. If you would invest 1,410 in Ekopak BV on November 1, 2024 and sell it today you would lose (75.00) from holding Ekopak BV or give up 5.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekopak BV vs. Sequana Medical NV
Performance |
| Timeline |
| Ekopak BV |
| Sequana Medical NV |
Ekopak BV and Sequana Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekopak BV and Sequana Medical
The main advantage of trading using opposite Ekopak BV and Sequana Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekopak BV position performs unexpectedly, Sequana 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 Sequana Medical will offset losses from the drop in Sequana Medical's long position.| Ekopak BV vs. Xior Student Housing | Ekopak BV vs. DIeteren Group SA | Ekopak BV vs. Melexis NV | Ekopak BV vs. DEME Group NV |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |