Correlation Between EMvision Medical and Finexia Financial
Can any of the company-specific risk be diversified away by investing in both EMvision Medical and Finexia Financial 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 Finexia Financial 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 Finexia Financial Group, you can compare the effects of market volatilities on EMvision Medical and Finexia Financial 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 Finexia Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMvision Medical and Finexia Financial.
Diversification Opportunities for EMvision Medical and Finexia Financial
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between EMvision and Finexia is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding EMvision Medical Devices and Finexia Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finexia Financial 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 Finexia Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finexia Financial has no effect on the direction of EMvision Medical i.e., EMvision Medical and Finexia Financial go up and down completely randomly.
Pair Corralation between EMvision Medical and Finexia Financial
Assuming the 90 days trading horizon EMvision Medical is expected to generate 2.59 times less return on investment than Finexia Financial. But when comparing it to its historical volatility, EMvision Medical Devices is 1.26 times less risky than Finexia Financial. It trades about 0.01 of its potential returns per unit of risk. Finexia Financial Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Finexia Financial Group on August 26, 2024 and sell it today you would earn a total of 5.00 from holding Finexia Financial Group or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMvision Medical Devices vs. Finexia Financial Group
Performance |
| Timeline |
| EMvision Medical Devices |
| Finexia Financial |
EMvision Medical and Finexia Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMvision Medical and Finexia Financial
The main advantage of trading using opposite EMvision Medical and Finexia Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMvision Medical position performs unexpectedly, Finexia Financial 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 Finexia Financial will offset losses from the drop in Finexia Financial's long position.| EMvision Medical vs. oOhMedia | EMvision Medical vs. Iron Road | EMvision Medical vs. Autosports Group | EMvision Medical vs. Queste Communications |
| Finexia Financial vs. Stelar Metals | Finexia Financial vs. Ainsworth Game Technology | Finexia Financial vs. Green Technology Metals | Finexia Financial vs. Viva Leisure |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |