Correlation Between SCANDMEDICAL SOLDK and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK and TRADEGATE 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 and TRADEGATE 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 TRADEGATE, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK and TRADEGATE 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 with a short position of TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK and TRADEGATE.
Diversification Opportunities for SCANDMEDICAL SOLDK and TRADEGATE
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SCANDMEDICAL and TRADEGATE is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE and SCANDMEDICAL SOLDK 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 TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of SCANDMEDICAL SOLDK i.e., SCANDMEDICAL SOLDK and TRADEGATE go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK and TRADEGATE
Assuming the 90 days horizon SCANDMEDICAL SOLDK 040 is expected to generate 8.2 times more return on investment than TRADEGATE. However, SCANDMEDICAL SOLDK is 8.2 times more volatile than TRADEGATE. It trades about 0.0 of its potential returns per unit of risk. TRADEGATE is currently generating about -0.04 per unit of risk. If you would invest 176.00 in SCANDMEDICAL SOLDK 040 on December 10, 2024 and sell it today you would lose (105.00) from holding SCANDMEDICAL SOLDK 040 or give up 59.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. TRADEGATE
Performance |
| Timeline |
| SCANDMEDICAL SOLDK 040 |
| TRADEGATE |
SCANDMEDICAL SOLDK and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDMEDICAL SOLDK and TRADEGATE
The main advantage of trading using opposite SCANDMEDICAL SOLDK and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE's long position.| SCANDMEDICAL SOLDK vs. NTG Nordic Transport | SCANDMEDICAL SOLDK vs. Scandinavian Tobacco Group | SCANDMEDICAL SOLDK vs. SOEDER SPORTFISKE AB | SCANDMEDICAL SOLDK vs. S E BANKEN A |
| TRADEGATE vs. REVO INSURANCE SPA | TRADEGATE vs. Cembra Money Bank | TRADEGATE vs. Chiba Bank | TRADEGATE vs. BANK OF CHINA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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