Correlation Between Episurf Medical and Nilsson Special
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Nilsson Special 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 Nilsson Special 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 Nilsson Special Vehicles, you can compare the effects of market volatilities on Episurf Medical and Nilsson Special 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 Nilsson Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Nilsson Special.
Diversification Opportunities for Episurf Medical and Nilsson Special
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Episurf and Nilsson is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Nilsson Special Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nilsson Special Vehicles 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 Nilsson Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nilsson Special Vehicles has no effect on the direction of Episurf Medical i.e., Episurf Medical and Nilsson Special go up and down completely randomly.
Pair Corralation between Episurf Medical and Nilsson Special
Assuming the 90 days trading horizon Episurf Medical AB is expected to generate 0.81 times more return on investment than Nilsson Special. However, Episurf Medical AB is 1.24 times less risky than Nilsson Special. It trades about 0.06 of its potential returns per unit of risk. Nilsson Special Vehicles is currently generating about -0.11 per unit of risk. If you would invest 12.00 in Episurf Medical AB on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Episurf Medical AB or generate 8.33% 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. Nilsson Special Vehicles
Performance |
| Timeline |
| Episurf Medical AB |
| Nilsson Special Vehicles |
Episurf Medical and Nilsson Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Nilsson Special
The main advantage of trading using opposite Episurf Medical and Nilsson Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Nilsson Special 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 Nilsson Special will offset losses from the drop in Nilsson Special'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 |
| Nilsson Special vs. USWE Sports AB | Nilsson Special vs. SaltX Technology Holding | Nilsson Special vs. Investment AB Oresund | Nilsson Special 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 Stocks Directory module to find actively traded stocks across global markets.
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