Correlation Between Isofol Medical and Mendus AB
Can any of the company-specific risk be diversified away by investing in both Isofol Medical and Mendus AB 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 Isofol Medical and Mendus AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Isofol Medical AB and Mendus AB, you can compare the effects of market volatilities on Isofol Medical and Mendus AB 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 Isofol Medical with a short position of Mendus AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Isofol Medical and Mendus AB.
Diversification Opportunities for Isofol Medical and Mendus AB
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Isofol and Mendus is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Isofol Medical AB and Mendus AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mendus AB and Isofol 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 Isofol Medical AB are associated (or correlated) with Mendus AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mendus AB has no effect on the direction of Isofol Medical i.e., Isofol Medical and Mendus AB go up and down completely randomly.
Pair Corralation between Isofol Medical and Mendus AB
Assuming the 90 days trading horizon Isofol Medical AB is expected to generate 2.2 times more return on investment than Mendus AB. However, Isofol Medical is 2.2 times more volatile than Mendus AB. It trades about -0.08 of its potential returns per unit of risk. Mendus AB is currently generating about -0.25 per unit of risk. If you would invest 247.00 in Isofol Medical AB on November 3, 2024 and sell it today you would lose (29.00) from holding Isofol Medical AB or give up 11.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Isofol Medical AB vs. Mendus AB
Performance |
| Timeline |
| Isofol Medical AB |
| Mendus AB |
Isofol Medical and Mendus AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Isofol Medical and Mendus AB
The main advantage of trading using opposite Isofol Medical and Mendus AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Isofol Medical position performs unexpectedly, Mendus AB 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 Mendus AB will offset losses from the drop in Mendus AB's long position.| Isofol Medical vs. XSpray Pharma AB | Isofol Medical vs. Oncopeptides AB | Isofol Medical vs. Hansa Biopharma AB | Isofol Medical vs. Alligator Bioscience AB |
| Mendus AB vs. Cantargia AB | Mendus AB vs. BioInvent International AB | Mendus AB vs. Alligator Bioscience AB | Mendus AB vs. Moberg Pharma 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |