Correlation Between Episurf Medical and Kjell Group
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Kjell 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 Kjell 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 Kjell Group AB, you can compare the effects of market volatilities on Episurf Medical and Kjell 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 Kjell Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Kjell Group.
Diversification Opportunities for Episurf Medical and Kjell Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Episurf and Kjell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Kjell Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kjell 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 Kjell Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kjell Group AB has no effect on the direction of Episurf Medical i.e., Episurf Medical and Kjell Group go up and down completely randomly.
Pair Corralation between Episurf Medical and Kjell Group
Assuming the 90 days trading horizon Episurf Medical AB is expected to generate 1.74 times more return on investment than Kjell Group. However, Episurf Medical is 1.74 times more volatile than Kjell Group AB. It trades about -0.07 of its potential returns per unit of risk. Kjell Group AB is currently generating about -0.23 per unit of risk. If you would invest 20.00 in Episurf Medical AB on August 28, 2024 and sell it today you would lose (5.00) from holding Episurf Medical AB or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Episurf Medical AB vs. Kjell Group AB
Performance |
| Timeline |
| Episurf Medical AB |
| Kjell Group AB |
Episurf Medical and Kjell Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Kjell Group
The main advantage of trading using opposite Episurf Medical and Kjell Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Kjell 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 Kjell Group will offset losses from the drop in Kjell Group's 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 |
| Kjell Group vs. Precise Biometrics AB | Kjell Group vs. Anoto Group AB | Kjell Group vs. Bong AB | Kjell 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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