Correlation Between EMvision Medical and Dug Technology
Can any of the company-specific risk be diversified away by investing in both EMvision Medical and Dug Technology 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 Dug Technology 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 Dug Technology, you can compare the effects of market volatilities on EMvision Medical and Dug Technology 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 Dug Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMvision Medical and Dug Technology.
Diversification Opportunities for EMvision Medical and Dug Technology
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EMvision and Dug is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding EMvision Medical Devices and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug Technology 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 Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of EMvision Medical i.e., EMvision Medical and Dug Technology go up and down completely randomly.
Pair Corralation between EMvision Medical and Dug Technology
Assuming the 90 days trading horizon EMvision Medical Devices is expected to under-perform the Dug Technology. But the stock apears to be less risky and, when comparing its historical volatility, EMvision Medical Devices is 2.55 times less risky than Dug Technology. The stock trades about -0.12 of its potential returns per unit of risk. The Dug Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 129.00 in Dug Technology on November 3, 2024 and sell it today you would earn a total of 6.00 from holding Dug Technology or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMvision Medical Devices vs. Dug Technology
Performance |
| Timeline |
| EMvision Medical Devices |
| Dug Technology |
EMvision Medical and Dug Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMvision Medical and Dug Technology
The main advantage of trading using opposite EMvision Medical and Dug Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMvision Medical position performs unexpectedly, Dug Technology 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 Dug Technology will offset losses from the drop in Dug Technology's long position.| EMvision Medical vs. A1 Investments Resources | EMvision Medical vs. Dexus Convenience Retail | EMvision Medical vs. Diversified United Investment | EMvision Medical vs. Tombador Iron |
| Dug Technology vs. Computershare | Dug Technology vs. Aurelia Metals | Dug Technology vs. Centaurus Metals | Dug Technology vs. Cleanaway Waste Management |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |