Correlation Between Episurf Medical and B3 Consulting
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and B3 Consulting 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 Episurf Medical and B3 Consulting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Episurf Medical AB and B3 Consulting Group, you can compare the effects of market volatilities on Episurf Medical and B3 Consulting 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 Episurf Medical with a short position of B3 Consulting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and B3 Consulting.
Diversification Opportunities for Episurf Medical and B3 Consulting
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Episurf and B3 Consulting is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and B3 Consulting Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B3 Consulting Group and Episurf 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 Episurf Medical AB are associated (or correlated) with B3 Consulting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B3 Consulting Group has no effect on the direction of Episurf Medical i.e., Episurf Medical and B3 Consulting go up and down completely randomly.
Pair Corralation between Episurf Medical and B3 Consulting
Assuming the 90 days trading horizon Episurf Medical AB is expected to under-perform the B3 Consulting. In addition to that, Episurf Medical is 2.13 times more volatile than B3 Consulting Group. It trades about -0.09 of its total potential returns per unit of risk. B3 Consulting Group is currently generating about -0.01 per unit of volatility. If you would invest 8,870 in B3 Consulting Group on September 12, 2024 and sell it today you would lose (1,390) from holding B3 Consulting Group or give up 15.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Episurf Medical AB vs. B3 Consulting Group
Performance |
| Timeline |
| Episurf Medical AB |
| B3 Consulting Group |
Episurf Medical and B3 Consulting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and B3 Consulting
The main advantage of trading using opposite Episurf Medical and B3 Consulting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, B3 Consulting 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 B3 Consulting will offset losses from the drop in B3 Consulting's long position.| Episurf Medical vs. Xvivo Perfusion AB | Episurf Medical vs. Bactiguard Holding AB | Episurf Medical vs. SpectraCure AB | Episurf Medical vs. Senzime AB |
| B3 Consulting vs. Svenska Aerogel Holding | B3 Consulting vs. Acarix AS | B3 Consulting vs. Clean Motion AB | B3 Consulting vs. Episurf Medical AB |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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