Correlation Between Episurf Medical and Peab AB
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Peab 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 Peab 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 Peab AB, you can compare the effects of market volatilities on Episurf Medical and Peab 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 Peab AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Peab AB.
Diversification Opportunities for Episurf Medical and Peab AB
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Episurf and Peab is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Peab AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peab 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 Peab AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peab AB has no effect on the direction of Episurf Medical i.e., Episurf Medical and Peab AB go up and down completely randomly.
Pair Corralation between Episurf Medical and Peab AB
Assuming the 90 days trading horizon Episurf Medical AB is expected to generate 2.73 times more return on investment than Peab AB. However, Episurf Medical is 2.73 times more volatile than Peab AB. It trades about 0.03 of its potential returns per unit of risk. Peab AB is currently generating about -0.01 per unit of risk. If you would invest 15.00 in Episurf Medical AB on August 30, 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 Together |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Episurf Medical AB vs. Peab AB
Performance |
| Timeline |
| Episurf Medical AB |
| Peab AB |
Episurf Medical and Peab AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Peab AB
The main advantage of trading using opposite Episurf Medical and Peab AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Peab 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 Peab AB will offset losses from the drop in Peab AB's long position.| Episurf Medical vs. KABE Group AB | Episurf Medical vs. IAR Systems Group | Episurf Medical vs. Mekonomen AB | Episurf Medical vs. eEducation Albert AB |
| Peab AB vs. Bio Works Technologies AB | Peab AB vs. Episurf Medical AB | Peab AB vs. OptiCept Technologies AB | Peab AB vs. SolTech Energy Sweden |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |