Correlation Between Logintrade and Medicalg
Can any of the company-specific risk be diversified away by investing in both Logintrade and Medicalg 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 Logintrade and Medicalg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logintrade SA and Medicalg, you can compare the effects of market volatilities on Logintrade and Medicalg 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 Logintrade with a short position of Medicalg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logintrade and Medicalg.
Diversification Opportunities for Logintrade and Medicalg
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Logintrade and Medicalg is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Logintrade SA and Medicalg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicalg and Logintrade 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 Logintrade SA are associated (or correlated) with Medicalg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicalg has no effect on the direction of Logintrade i.e., Logintrade and Medicalg go up and down completely randomly.
Pair Corralation between Logintrade and Medicalg
Assuming the 90 days trading horizon Logintrade SA is expected to generate 1.66 times more return on investment than Medicalg. However, Logintrade is 1.66 times more volatile than Medicalg. It trades about 0.05 of its potential returns per unit of risk. Medicalg is currently generating about -0.04 per unit of risk. If you would invest 282.00 in Logintrade SA on September 14, 2024 and sell it today you would earn a total of 86.00 from holding Logintrade SA or generate 30.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 67.91% |
| Values | Daily Returns |
Logintrade SA vs. Medicalg
Performance |
| Timeline |
| Logintrade SA |
| Medicalg |
Logintrade and Medicalg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logintrade and Medicalg
The main advantage of trading using opposite Logintrade and Medicalg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logintrade position performs unexpectedly, Medicalg 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 Medicalg will offset losses from the drop in Medicalg's long position.| Logintrade vs. Banco Santander SA | Logintrade vs. UniCredit SpA | Logintrade vs. CEZ as | Logintrade vs. Polski Koncern Naftowy |
| Medicalg vs. Adiuvo Investment SA | Medicalg vs. Asseco Business Solutions | Medicalg vs. Asseco South Eastern | Medicalg vs. HM Inwest SA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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