Correlation Between Episurf Medical and Scandinavian Enviro
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Scandinavian Enviro 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 Scandinavian Enviro 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 Scandinavian Enviro Systems, you can compare the effects of market volatilities on Episurf Medical and Scandinavian Enviro 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 Scandinavian Enviro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Scandinavian Enviro.
Diversification Opportunities for Episurf Medical and Scandinavian Enviro
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Episurf and Scandinavian is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Scandinavian Enviro Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Enviro 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 Scandinavian Enviro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Enviro has no effect on the direction of Episurf Medical i.e., Episurf Medical and Scandinavian Enviro go up and down completely randomly.
Pair Corralation between Episurf Medical and Scandinavian Enviro
Assuming the 90 days trading horizon Episurf Medical AB is expected to under-perform the Scandinavian Enviro. In addition to that, Episurf Medical is 2.49 times more volatile than Scandinavian Enviro Systems. It trades about -0.11 of its total potential returns per unit of risk. Scandinavian Enviro Systems is currently generating about -0.06 per unit of volatility. If you would invest 242.00 in Scandinavian Enviro Systems on September 3, 2024 and sell it today you would lose (51.00) from holding Scandinavian Enviro Systems or give up 21.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Episurf Medical AB vs. Scandinavian Enviro Systems
Performance |
| Timeline |
| Episurf Medical AB |
| Scandinavian Enviro |
Episurf Medical and Scandinavian Enviro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Scandinavian Enviro
The main advantage of trading using opposite Episurf Medical and Scandinavian Enviro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Scandinavian Enviro 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 Scandinavian Enviro will offset losses from the drop in Scandinavian Enviro's long position.| Episurf Medical vs. BioInvent International AB | Episurf Medical vs. Cantargia AB | Episurf Medical vs. Bonesupport Holding AB | Episurf Medical vs. Bactiguard Holding AB |
| Scandinavian Enviro vs. Minesto AB | Scandinavian Enviro vs. Sivers IMA Holding | Scandinavian Enviro vs. SolTech Energy Sweden | Scandinavian Enviro vs. AAC Clyde Space |
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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