Correlation Between Episurf Medical and Xvivo Perfusion
Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Xvivo Perfusion 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 Xvivo Perfusion 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 Xvivo Perfusion AB, you can compare the effects of market volatilities on Episurf Medical and Xvivo Perfusion 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 Xvivo Perfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Xvivo Perfusion.
Diversification Opportunities for Episurf Medical and Xvivo Perfusion
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Episurf and Xvivo is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Xvivo Perfusion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xvivo Perfusion 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 Xvivo Perfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xvivo Perfusion AB has no effect on the direction of Episurf Medical i.e., Episurf Medical and Xvivo Perfusion go up and down completely randomly.
Pair Corralation between Episurf Medical and Xvivo Perfusion
Assuming the 90 days trading horizon Episurf Medical AB is expected to under-perform the Xvivo Perfusion. In addition to that, Episurf Medical is 2.03 times more volatile than Xvivo Perfusion AB. It trades about -0.11 of its total potential returns per unit of risk. Xvivo Perfusion AB is currently generating about 0.09 per unit of volatility. If you would invest 26,700 in Xvivo Perfusion AB on August 26, 2024 and sell it today you would earn a total of 18,450 from holding Xvivo Perfusion AB or generate 69.1% 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. Xvivo Perfusion AB
Performance |
| Timeline |
| Episurf Medical AB |
| Xvivo Perfusion AB |
Episurf Medical and Xvivo Perfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Episurf Medical and Xvivo Perfusion
The main advantage of trading using opposite Episurf Medical and Xvivo Perfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical position performs unexpectedly, Xvivo Perfusion 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 Xvivo Perfusion will offset losses from the drop in Xvivo Perfusion's long position.| Episurf Medical vs. Xvivo Perfusion AB | Episurf Medical vs. SpectraCure AB | Episurf Medical vs. Senzime 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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