Correlation Between Insuline Medical and Epitomee Medical
Can any of the company-specific risk be diversified away by investing in both Insuline Medical and Epitomee Medical 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 Insuline Medical and Epitomee Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insuline Medical and Epitomee Medical, you can compare the effects of market volatilities on Insuline Medical and Epitomee Medical 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 Insuline Medical with a short position of Epitomee Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insuline Medical and Epitomee Medical.
Diversification Opportunities for Insuline Medical and Epitomee Medical
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Insuline and Epitomee is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Insuline Medical and Epitomee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epitomee Medical and Insuline 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 Insuline Medical are associated (or correlated) with Epitomee Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epitomee Medical has no effect on the direction of Insuline Medical i.e., Insuline Medical and Epitomee Medical go up and down completely randomly.
Pair Corralation between Insuline Medical and Epitomee Medical
Assuming the 90 days trading horizon Insuline Medical is expected to under-perform the Epitomee Medical. In addition to that, Insuline Medical is 1.58 times more volatile than Epitomee Medical. It trades about -0.41 of its total potential returns per unit of risk. Epitomee Medical is currently generating about -0.23 per unit of volatility. If you would invest 99,890 in Epitomee Medical on October 23, 2024 and sell it today you would lose (7,970) from holding Epitomee Medical or give up 7.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insuline Medical vs. Epitomee Medical
Performance |
| Timeline |
| Insuline Medical |
| Epitomee Medical |
Insuline Medical and Epitomee Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insuline Medical and Epitomee Medical
The main advantage of trading using opposite Insuline Medical and Epitomee Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insuline Medical position performs unexpectedly, Epitomee Medical 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 Epitomee Medical will offset losses from the drop in Epitomee Medical's long position.| Insuline Medical vs. Intercure | Insuline Medical vs. Sofwave Medical | Insuline Medical vs. Epitomee Medical | Insuline Medical vs. Bio View |
| Epitomee Medical vs. Intercure | Epitomee Medical vs. Sofwave Medical | Epitomee Medical vs. Bio View | Epitomee Medical vs. Elbit Imaging |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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