Correlation Between Episurf Medical and Dometic Group
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Dometic Group 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 Dometic Group 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 Dometic Group AB, you can compare the effects of market volatilities on Episurf Medical and Dometic Group 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 Dometic Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Dometic Group.
Diversification Opportunities for Episurf Medical and Dometic Group
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Episurf and Dometic is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Dometic Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dometic Group AB 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 Dometic Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dometic Group AB has no effect on the direction of Episurf Medical i.e., Episurf Medical and Dometic Group go up and down completely randomly.
Pair Corralation between Episurf Medical and Dometic Group
Assuming the 90 days trading horizon Episurf Medical AB is expected to under-perform the Dometic Group. In addition to that, Episurf Medical is 3.12 times more volatile than Dometic Group AB. It trades about -0.11 of its total potential returns per unit of risk. Dometic Group AB is currently generating about -0.1 per unit of volatility. If you would invest 8,268 in Dometic Group AB on August 25, 2024 and sell it today you would lose (2,918) from holding Dometic Group AB or give up 35.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Episurf Medical AB vs. Dometic Group AB
Performance |
| Timeline |
| Episurf Medical AB |
| Dometic Group AB |
Episurf Medical and Dometic Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Dometic Group
The main advantage of trading using opposite Episurf Medical and Dometic Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Dometic Group 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 Dometic Group will offset losses from the drop in Dometic Group's long position.| Episurf Medical vs. Xvivo Perfusion AB | Episurf Medical vs. BICO Group AB | Episurf Medical vs. Mentice AB | Episurf Medical vs. SpectraCure AB |
| Dometic Group vs. Precise Biometrics AB | Dometic Group vs. Anoto Group AB | Dometic Group vs. Bong AB | Dometic Group 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |