Correlation Between Implantica and Dedicare
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By analyzing existing cross correlation between Implantica AG and Dedicare AB, you can compare the effects of market volatilities on Implantica and Dedicare 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 Implantica with a short position of Dedicare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Implantica and Dedicare.
Diversification Opportunities for Implantica and Dedicare
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Implantica and Dedicare is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Implantica AG and Dedicare AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dedicare AB and Implantica 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 Implantica AG are associated (or correlated) with Dedicare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dedicare AB has no effect on the direction of Implantica i.e., Implantica and Dedicare go up and down completely randomly.
Pair Corralation between Implantica and Dedicare
Assuming the 90 days trading horizon Implantica AG is expected to under-perform the Dedicare. In addition to that, Implantica is 1.5 times more volatile than Dedicare AB. It trades about -0.16 of its total potential returns per unit of risk. Dedicare AB is currently generating about -0.08 per unit of volatility. If you would invest 5,860 in Dedicare AB on September 1, 2024 and sell it today you would lose (250.00) from holding Dedicare AB or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Implantica AG vs. Dedicare AB
Performance |
| Timeline |
| Implantica AG |
| Dedicare AB |
Implantica and Dedicare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Implantica and Dedicare
The main advantage of trading using opposite Implantica and Dedicare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Implantica position performs unexpectedly, Dedicare 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 Dedicare will offset losses from the drop in Dedicare's long position.| Implantica vs. Bonesupport Holding AB | Implantica vs. Surgical Science Sweden | Implantica vs. Storytel 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 CEOs Directory module to screen CEOs from public companies around the world.
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