Correlation Between Episurf Medical and Q Linea
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Q Linea 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 Q Linea 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 Q linea AB, you can compare the effects of market volatilities on Episurf Medical and Q Linea 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 Q Linea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Q Linea.
Diversification Opportunities for Episurf Medical and Q Linea
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Episurf and QLINEA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Q linea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q linea 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 Q Linea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q linea AB has no effect on the direction of Episurf Medical i.e., Episurf Medical and Q Linea go up and down completely randomly.
Pair Corralation between Episurf Medical and Q Linea
Assuming the 90 days trading horizon Episurf Medical AB is expected to under-perform the Q Linea. But the stock apears to be less risky and, when comparing its historical volatility, Episurf Medical AB is 1.17 times less risky than Q Linea. The stock trades about -0.1 of its potential returns per unit of risk. The Q linea AB is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 276.00 in Q linea AB on September 14, 2024 and sell it today you would lose (168.00) from holding Q linea AB or give up 60.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Episurf Medical AB vs. Q linea AB
Performance |
| Timeline |
| Episurf Medical AB |
| Q linea AB |
Episurf Medical and Q Linea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Q Linea
The main advantage of trading using opposite Episurf Medical and Q Linea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Q Linea 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 Q Linea will offset losses from the drop in Q Linea'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 |
| Q Linea vs. Immunovia publ AB | Q Linea vs. Camurus AB | Q Linea vs. Hansa Biopharma AB | Q Linea vs. Bonesupport Holding 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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