Correlation Between SCANDMEDICAL SOLDK-040 and VIVA WINE
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 and VIVA WINE 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 VIVA WINE 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 VIVA WINE GROUP, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 and VIVA WINE 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 VIVA WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and VIVA WINE.
Diversification Opportunities for SCANDMEDICAL SOLDK-040 and VIVA WINE
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SCANDMEDICAL and VIVA is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and VIVA WINE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVA WINE GROUP 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 VIVA WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVA WINE GROUP has no effect on the direction of SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and VIVA WINE go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK-040 and VIVA WINE
Assuming the 90 days horizon SCANDMEDICAL SOLDK-040 is expected to generate 1.26 times less return on investment than VIVA WINE. In addition to that, SCANDMEDICAL SOLDK-040 is 1.5 times more volatile than VIVA WINE GROUP. It trades about 0.03 of its total potential returns per unit of risk. VIVA WINE GROUP is currently generating about 0.06 per unit of volatility. If you would invest 126.00 in VIVA WINE GROUP on September 3, 2024 and sell it today you would earn a total of 214.00 from holding VIVA WINE GROUP or generate 169.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. VIVA WINE GROUP
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| VIVA WINE GROUP |
SCANDMEDICAL SOLDK-040 and VIVA WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK-040 and VIVA WINE
The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and VIVA WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 position performs unexpectedly, VIVA WINE 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 VIVA WINE will offset losses from the drop in VIVA WINE's long position.| SCANDMEDICAL SOLDK-040 vs. Stryker | SCANDMEDICAL SOLDK-040 vs. Insulet | SCANDMEDICAL SOLDK-040 vs. Superior Plus Corp | SCANDMEDICAL SOLDK-040 vs. NMI Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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