Correlation Between Live Motion and Medicalg
Can any of the company-specific risk be diversified away by investing in both Live Motion 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 Live Motion and Medicalg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Motion Games and Medicalg, you can compare the effects of market volatilities on Live Motion 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 Live Motion with a short position of Medicalg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Motion and Medicalg.
Diversification Opportunities for Live Motion and Medicalg
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Live and Medicalg is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Live Motion Games and Medicalg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicalg and Live Motion 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 Live Motion Games 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 Live Motion i.e., Live Motion and Medicalg go up and down completely randomly.
Pair Corralation between Live Motion and Medicalg
Assuming the 90 days trading horizon Live Motion Games is expected to under-perform the Medicalg. But the stock apears to be less risky and, when comparing its historical volatility, Live Motion Games is 1.14 times less risky than Medicalg. The stock trades about -0.52 of its potential returns per unit of risk. The Medicalg is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 2,170 in Medicalg on September 14, 2024 and sell it today you would lose (385.00) from holding Medicalg or give up 17.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Live Motion Games vs. Medicalg
Performance |
| Timeline |
| Live Motion Games |
| Medicalg |
Live Motion and Medicalg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Motion and Medicalg
The main advantage of trading using opposite Live Motion and Medicalg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Motion 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.| Live Motion vs. Creativeforge Games SA | Live Motion vs. ECC Games SA | Live Motion vs. Asseco Business Solutions | Live Motion vs. Asseco South Eastern |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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