Correlation Between Episurf Medical and Bonesupport Holding
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Bonesupport Holding 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 Bonesupport Holding 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 Bonesupport Holding AB, you can compare the effects of market volatilities on Episurf Medical and Bonesupport Holding 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 Bonesupport Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Bonesupport Holding.
Diversification Opportunities for Episurf Medical and Bonesupport Holding
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Episurf and Bonesupport is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Bonesupport Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonesupport Holding 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 Bonesupport Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonesupport Holding has no effect on the direction of Episurf Medical i.e., Episurf Medical and Bonesupport Holding go up and down completely randomly.
Pair Corralation between Episurf Medical and Bonesupport Holding
Assuming the 90 days trading horizon Episurf Medical AB is expected to under-perform the Bonesupport Holding. In addition to that, Episurf Medical is 2.27 times more volatile than Bonesupport Holding AB. It trades about -0.1 of its total potential returns per unit of risk. Bonesupport Holding AB is currently generating about 0.11 per unit of volatility. If you would invest 18,820 in Bonesupport Holding AB on September 14, 2024 and sell it today you would earn a total of 15,720 from holding Bonesupport Holding AB or generate 83.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Episurf Medical AB vs. Bonesupport Holding AB
Performance |
| Timeline |
| Episurf Medical AB |
| Bonesupport Holding |
Episurf Medical and Bonesupport Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Bonesupport Holding
The main advantage of trading using opposite Episurf Medical and Bonesupport Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Bonesupport Holding 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 Bonesupport Holding will offset losses from the drop in Bonesupport Holding'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 |
| Bonesupport Holding vs. Mendus AB | Bonesupport Holding vs. Cantargia AB | Bonesupport Holding vs. BioInvent International AB | Bonesupport Holding vs. Isofol 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |