Correlation Between Episurf Medical and Investment
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Investment 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 Investment 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 Investment AB Oresund, you can compare the effects of market volatilities on Episurf Medical and Investment 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 Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Investment.
Diversification Opportunities for Episurf Medical and Investment
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Episurf and Investment is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Investment AB Oresund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment AB Oresund 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 Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment AB Oresund has no effect on the direction of Episurf Medical i.e., Episurf Medical and Investment go up and down completely randomly.
Pair Corralation between Episurf Medical and Investment
Assuming the 90 days trading horizon Episurf Medical AB is expected to generate 3.91 times more return on investment than Investment. However, Episurf Medical is 3.91 times more volatile than Investment AB Oresund. It trades about 0.03 of its potential returns per unit of risk. Investment AB Oresund is currently generating about -0.13 per unit of risk. If you would invest 14.00 in Episurf Medical AB on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Episurf Medical AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Episurf Medical AB vs. Investment AB Oresund
Performance |
| Timeline |
| Episurf Medical AB |
| Investment AB Oresund |
Episurf Medical and Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Investment
The main advantage of trading using opposite Episurf Medical and Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Investment 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 Investment will offset losses from the drop in Investment's long position.| Episurf Medical vs. Clinical Laserthermia Systems | Episurf Medical vs. KABE Group AB | Episurf Medical vs. IAR Systems Group | Episurf Medical vs. Mekonomen AB |
| Investment vs. Bure Equity AB | Investment vs. Creades AB | Investment vs. L E Lundbergfretagen | Investment vs. Industrivarden AB ser |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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