Correlation Between Episurf Medical and Image Systems
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Image Systems 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 Image Systems 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 Image Systems AB, you can compare the effects of market volatilities on Episurf Medical and Image Systems 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 Image Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Image Systems.
Diversification Opportunities for Episurf Medical and Image Systems
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Episurf and Image is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Image Systems AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Image Systems 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 Image Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Image Systems AB has no effect on the direction of Episurf Medical i.e., Episurf Medical and Image Systems go up and down completely randomly.
Pair Corralation between Episurf Medical and Image Systems
Assuming the 90 days trading horizon Episurf Medical AB is expected to under-perform the Image Systems. In addition to that, Episurf Medical is 1.39 times more volatile than Image Systems AB. It trades about -0.08 of its total potential returns per unit of risk. Image Systems AB is currently generating about 0.05 per unit of volatility. If you would invest 127.00 in Image Systems AB on August 31, 2024 and sell it today you would earn a total of 62.00 from holding Image Systems AB or generate 48.82% 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. Image Systems AB
Performance |
| Timeline |
| Episurf Medical AB |
| Image Systems AB |
Episurf Medical and Image Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Image Systems
The main advantage of trading using opposite Episurf Medical and Image Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Image Systems 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 Image Systems will offset losses from the drop in Image Systems' long position.| Episurf Medical vs. BioInvent International AB | Episurf Medical vs. Cantargia AB | Episurf Medical vs. Bonesupport Holding AB | Episurf Medical vs. Bactiguard Holding AB |
| Image Systems vs. Precise Biometrics AB | Image Systems vs. Anoto Group AB | Image Systems vs. Bong AB | Image Systems 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |