Correlation Between Embla Medical and Maj Invest
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By analyzing existing cross correlation between Embla Medical hf and Maj Invest Glob, you can compare the effects of market volatilities on Embla Medical and Maj Invest 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 Embla Medical with a short position of Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embla Medical and Maj Invest.
Diversification Opportunities for Embla Medical and Maj Invest
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Embla and Maj is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Embla Medical hf and Maj Invest Glob in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Glob and Embla Medical 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 Embla Medical hf are associated (or correlated) with Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Glob has no effect on the direction of Embla Medical i.e., Embla Medical and Maj Invest go up and down completely randomly.
Pair Corralation between Embla Medical and Maj Invest
Assuming the 90 days trading horizon Embla Medical hf is expected to generate 2.02 times more return on investment than Maj Invest. However, Embla Medical is 2.02 times more volatile than Maj Invest Glob. It trades about 0.18 of its potential returns per unit of risk. Maj Invest Glob is currently generating about 0.03 per unit of risk. If you would invest 3,500 in Embla Medical hf on September 13, 2024 and sell it today you would earn a total of 190.00 from holding Embla Medical hf or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Embla Medical hf vs. Maj Invest Glob
Performance |
| Timeline |
| Embla Medical hf |
| Maj Invest Glob |
Embla Medical and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embla Medical and Maj Invest
The main advantage of trading using opposite Embla Medical and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embla Medical position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Embla Medical vs. Novo Nordisk AS | Embla Medical vs. Nordea Bank Abp | Embla Medical vs. DSV Panalpina AS | Embla Medical vs. AP Mller |
| Maj Invest vs. Groenlandsbanken AS | Maj Invest vs. North Media AS | Maj Invest vs. Nordfyns Bank AS | Maj Invest vs. Embla Medical hf |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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