Correlation Between EMvision Medical and SPASX 200
Can any of the company-specific risk be diversified away by investing in both EMvision Medical and SPASX 200 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 EMvision Medical and SPASX 200 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMvision Medical Devices and SPASX 200 VIX, you can compare the effects of market volatilities on EMvision Medical and SPASX 200 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 EMvision Medical with a short position of SPASX 200. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMvision Medical and SPASX 200.
Diversification Opportunities for EMvision Medical and SPASX 200
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between EMvision and SPASX is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding EMvision Medical Devices and SPASX 200 VIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPASX 200 VIX and EMvision 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 EMvision Medical Devices are associated (or correlated) with SPASX 200. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPASX 200 VIX has no effect on the direction of EMvision Medical i.e., EMvision Medical and SPASX 200 go up and down completely randomly.
Pair Corralation between EMvision Medical and SPASX 200
Assuming the 90 days trading horizon EMvision Medical Devices is expected to generate 0.25 times more return on investment than SPASX 200. However, EMvision Medical Devices is 3.96 times less risky than SPASX 200. It trades about 0.03 of its potential returns per unit of risk. SPASX 200 VIX is currently generating about -0.02 per unit of risk. If you would invest 196.00 in EMvision Medical Devices on September 1, 2024 and sell it today you would earn a total of 2.00 from holding EMvision Medical Devices or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
EMvision Medical Devices vs. SPASX 200 VIX
Performance |
| Timeline |
EMvision Medical and SPASX 200 Volatility Contrast
Predicted Return Density |
| Returns |
EMvision Medical Devices
Pair trading matchups for EMvision Medical
SPASX 200 VIX
Pair trading matchups for SPASX 200
Pair Trading with EMvision Medical and SPASX 200
The main advantage of trading using opposite EMvision Medical and SPASX 200 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMvision Medical position performs unexpectedly, SPASX 200 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 SPASX 200 will offset losses from the drop in SPASX 200's long position.| EMvision Medical vs. Jupiter Energy | EMvision Medical vs. WA1 Resources | EMvision Medical vs. Cooper Metals | EMvision Medical vs. OD6 Metals |
| SPASX 200 vs. Alto Metals | SPASX 200 vs. Dicker Data | SPASX 200 vs. Wt Financial Group | SPASX 200 vs. Auswide Bank |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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