Correlation Between MeVis Medical and WUXI BIOLOGICS
Can any of the company-specific risk be diversified away by investing in both MeVis Medical and WUXI BIOLOGICS 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 WUXI BIOLOGICS 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 WUXI BIOLOGICS UNSPADR2, you can compare the effects of market volatilities on MeVis Medical and WUXI BIOLOGICS 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 WUXI BIOLOGICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and WUXI BIOLOGICS.
Diversification Opportunities for MeVis Medical and WUXI BIOLOGICS
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MeVis and WUXI is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and WUXI BIOLOGICS UNSPADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WUXI BIOLOGICS UNSPADR2 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 WUXI BIOLOGICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WUXI BIOLOGICS UNSPADR2 has no effect on the direction of MeVis Medical i.e., MeVis Medical and WUXI BIOLOGICS go up and down completely randomly.
Pair Corralation between MeVis Medical and WUXI BIOLOGICS
Assuming the 90 days trading horizon MeVis Medical is expected to generate 19.3 times less return on investment than WUXI BIOLOGICS. But when comparing it to its historical volatility, MeVis Medical Solutions is 4.77 times less risky than WUXI BIOLOGICS. It trades about 0.04 of its potential returns per unit of risk. WUXI BIOLOGICS UNSPADR2 is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 374.00 in WUXI BIOLOGICS UNSPADR2 on September 14, 2024 and sell it today you would earn a total of 64.00 from holding WUXI BIOLOGICS UNSPADR2 or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeVis Medical Solutions vs. WUXI BIOLOGICS UNSPADR2
Performance |
| Timeline |
| MeVis Medical Solutions |
| WUXI BIOLOGICS UNSPADR2 |
MeVis Medical and WUXI BIOLOGICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and WUXI BIOLOGICS
The main advantage of trading using opposite MeVis Medical and WUXI BIOLOGICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical position performs unexpectedly, WUXI BIOLOGICS 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 WUXI BIOLOGICS will offset losses from the drop in WUXI BIOLOGICS's long position.| MeVis Medical vs. National Beverage Corp | MeVis Medical vs. ScanSource | MeVis Medical vs. BOSTON BEER A | MeVis Medical vs. Monster Beverage Corp |
| WUXI BIOLOGICS vs. National Health Investors | WUXI BIOLOGICS vs. GUARDANT HEALTH CL | WUXI BIOLOGICS vs. AGF Management Limited | WUXI BIOLOGICS vs. CVS Health |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |