Correlation Between MeVis Medical and GUOTAI JUNAN
Can any of the company-specific risk be diversified away by investing in both MeVis Medical and GUOTAI JUNAN 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 MeVis Medical and GUOTAI JUNAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MeVis Medical Solutions and GUOTAI JUNAN SEC, you can compare the effects of market volatilities on MeVis Medical and GUOTAI JUNAN 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 MeVis Medical with a short position of GUOTAI JUNAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and GUOTAI JUNAN.
Diversification Opportunities for MeVis Medical and GUOTAI JUNAN
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MeVis and GUOTAI is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and GUOTAI JUNAN SEC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOTAI JUNAN SEC and MeVis Medical 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 MeVis Medical Solutions are associated (or correlated) with GUOTAI JUNAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOTAI JUNAN SEC has no effect on the direction of MeVis Medical i.e., MeVis Medical and GUOTAI JUNAN go up and down completely randomly.
Pair Corralation between MeVis Medical and GUOTAI JUNAN
Assuming the 90 days trading horizon MeVis Medical is expected to generate 46.46 times less return on investment than GUOTAI JUNAN. But when comparing it to its historical volatility, MeVis Medical Solutions is 3.11 times less risky than GUOTAI JUNAN. It trades about 0.0 of its potential returns per unit of risk. GUOTAI JUNAN SEC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 133.00 in GUOTAI JUNAN SEC on August 30, 2024 and sell it today you would earn a total of 4.00 from holding GUOTAI JUNAN SEC or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MeVis Medical Solutions vs. GUOTAI JUNAN SEC
Performance |
| Timeline |
| MeVis Medical Solutions |
| GUOTAI JUNAN SEC |
MeVis Medical and GUOTAI JUNAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and GUOTAI JUNAN
The main advantage of trading using opposite MeVis Medical and GUOTAI JUNAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical position performs unexpectedly, GUOTAI JUNAN 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 GUOTAI JUNAN will offset losses from the drop in GUOTAI JUNAN's long position.| MeVis Medical vs. GungHo Online Entertainment | MeVis Medical vs. Autohome ADR | MeVis Medical vs. Corporate Office Properties | MeVis Medical vs. Lamar Advertising |
| GUOTAI JUNAN vs. Macquarie Group Limited | GUOTAI JUNAN vs. MSCI Inc | GUOTAI JUNAN vs. Superior Plus Corp | GUOTAI JUNAN 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |