Correlation Between Episurf Medical and NOTE AB
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and NOTE AB 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 NOTE AB 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 NOTE AB, you can compare the effects of market volatilities on Episurf Medical and NOTE AB 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 NOTE AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and NOTE AB.
Diversification Opportunities for Episurf Medical and NOTE AB
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Episurf and NOTE is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and NOTE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOTE 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 NOTE AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOTE AB has no effect on the direction of Episurf Medical i.e., Episurf Medical and NOTE AB go up and down completely randomly.
Pair Corralation between Episurf Medical and NOTE AB
Assuming the 90 days trading horizon Episurf Medical AB is expected to generate 4.38 times more return on investment than NOTE AB. However, Episurf Medical is 4.38 times more volatile than NOTE AB. It trades about 0.08 of its potential returns per unit of risk. NOTE AB is currently generating about -0.2 per unit of risk. If you would invest 14.00 in Episurf Medical AB on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Episurf Medical AB or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Episurf Medical AB vs. NOTE AB
Performance |
| Timeline |
| Episurf Medical AB |
| NOTE AB |
Episurf Medical and NOTE AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and NOTE AB
The main advantage of trading using opposite Episurf Medical and NOTE AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, NOTE AB 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 NOTE AB will offset losses from the drop in NOTE AB's long position.| Episurf Medical vs. Xvivo Perfusion AB | Episurf Medical vs. BICO Group AB | Episurf Medical vs. Bactiguard Holding AB | Episurf Medical vs. Stille AB |
| NOTE AB vs. New Nordic Healthbrands | NOTE AB vs. Episurf Medical AB | NOTE AB vs. Filo Mining Corp | NOTE AB vs. JLT Mobile Computers |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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