Correlation Between MSP Recovery and So Young
Can any of the company-specific risk be diversified away by investing in both MSP Recovery and So Young 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 MSP Recovery and So Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSP Recovery and So Young International, you can compare the effects of market volatilities on MSP Recovery and So Young 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 MSP Recovery with a short position of So Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSP Recovery and So Young.
Diversification Opportunities for MSP Recovery and So Young
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between MSP and So Young is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding MSP Recovery and So Young International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on So Young International and MSP Recovery 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 MSP Recovery are associated (or correlated) with So Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of So Young International has no effect on the direction of MSP Recovery i.e., MSP Recovery and So Young go up and down completely randomly.
Pair Corralation between MSP Recovery and So Young
Given the investment horizon of 90 days MSP Recovery is expected to under-perform the So Young. In addition to that, MSP Recovery is 1.45 times more volatile than So Young International. It trades about -0.24 of its total potential returns per unit of risk. So Young International is currently generating about -0.02 per unit of volatility. If you would invest 108.00 in So Young International on September 1, 2024 and sell it today you would lose (25.00) from holding So Young International or give up 23.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MSP Recovery vs. So Young International
Performance |
| Timeline |
| MSP Recovery |
| So Young International |
MSP Recovery and So Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSP Recovery and So Young
The main advantage of trading using opposite MSP Recovery and So Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSP Recovery position performs unexpectedly, So Young 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 So Young will offset losses from the drop in So Young's long position.| MSP Recovery vs. Profound Medical Corp | MSP Recovery vs. Si Bone | MSP Recovery vs. Nevro Corp | MSP Recovery vs. Paragon 28 |
| So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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