Correlation Between SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES 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 SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES 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 SCANDMEDICAL SOLDK-040 with a short position of MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES.
Diversification Opportunities for SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCANDMEDICAL and MEDICAL is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 are associated (or correlated) with MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES
Assuming the 90 days horizon SCANDMEDICAL SOLDK-040 is expected to generate 27.29 times less return on investment than MEDICAL FACILITIES. In addition to that, SCANDMEDICAL SOLDK-040 is 1.01 times more volatile than MEDICAL FACILITIES NEW. It trades about 0.01 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.26 per unit of volatility. If you would invest 1,021 in MEDICAL FACILITIES NEW on October 24, 2024 and sell it today you would earn a total of 89.00 from holding MEDICAL FACILITIES NEW or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| MEDICAL FACILITIES NEW |
SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES
The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| SCANDMEDICAL SOLDK-040 vs. Abbott Laboratories | SCANDMEDICAL SOLDK-040 vs. Abbott Laboratories | SCANDMEDICAL SOLDK-040 vs. Medtronic PLC | SCANDMEDICAL SOLDK-040 vs. Stryker |
| MEDICAL FACILITIES vs. Neinor Homes SA | MEDICAL FACILITIES vs. Haverty Furniture Companies | MEDICAL FACILITIES vs. ADDUS HOMECARE | MEDICAL FACILITIES vs. UNIVMUSIC GRPADR050 |
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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