Correlation Between Episurf Medical and Moment Group
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Moment 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 Moment 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 Moment Group AB, you can compare the effects of market volatilities on Episurf Medical and Moment 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 Moment Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Moment Group.
Diversification Opportunities for Episurf Medical and Moment Group
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Episurf and Moment is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Moment Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moment 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 Moment Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moment Group AB has no effect on the direction of Episurf Medical i.e., Episurf Medical and Moment Group go up and down completely randomly.
Pair Corralation between Episurf Medical and Moment Group
Assuming the 90 days trading horizon Episurf Medical AB is expected to under-perform the Moment Group. But the stock apears to be less risky and, when comparing its historical volatility, Episurf Medical AB is 1.07 times less risky than Moment Group. The stock trades about -0.19 of its potential returns per unit of risk. The Moment Group AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,060 in Moment Group AB on September 12, 2024 and sell it today you would lose (45.00) from holding Moment Group AB or give up 4.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Episurf Medical AB vs. Moment Group AB
Performance |
| Timeline |
| Episurf Medical AB |
| Moment Group AB |
Episurf Medical and Moment Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Moment Group
The main advantage of trading using opposite Episurf Medical and Moment Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Moment 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 Moment Group will offset losses from the drop in Moment Group'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 |
| Moment Group vs. Karolinska Development AB | Moment Group vs. Oncopeptides AB | Moment 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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