Correlation Between MeVis Medical and HITACHI CONSTRMACHADR/2
Can any of the company-specific risk be diversified away by investing in both MeVis Medical and HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2 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 HITACHI STRMACHADR2, you can compare the effects of market volatilities on MeVis Medical and HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and HITACHI CONSTRMACHADR/2.
Diversification Opportunities for MeVis Medical and HITACHI CONSTRMACHADR/2
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MeVis and HITACHI is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and HITACHI STRMACHADR2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HITACHI CONSTRMACHADR/2 has no effect on the direction of MeVis Medical i.e., MeVis Medical and HITACHI CONSTRMACHADR/2 go up and down completely randomly.
Pair Corralation between MeVis Medical and HITACHI CONSTRMACHADR/2
Assuming the 90 days trading horizon MeVis Medical Solutions is expected to under-perform the HITACHI CONSTRMACHADR/2. But the stock apears to be less risky and, when comparing its historical volatility, MeVis Medical Solutions is 1.94 times less risky than HITACHI CONSTRMACHADR/2. The stock trades about -0.04 of its potential returns per unit of risk. The HITACHI STRMACHADR2 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,889 in HITACHI STRMACHADR2 on September 3, 2024 and sell it today you would earn a total of 251.00 from holding HITACHI STRMACHADR2 or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeVis Medical Solutions vs. HITACHI STRMACHADR2
Performance |
| Timeline |
| MeVis Medical Solutions |
| HITACHI CONSTRMACHADR/2 |
MeVis Medical and HITACHI CONSTRMACHADR/2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and HITACHI CONSTRMACHADR/2
The main advantage of trading using opposite MeVis Medical and HITACHI CONSTRMACHADR/2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical position performs unexpectedly, HITACHI CONSTRMACHADR/2 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 HITACHI CONSTRMACHADR/2 will offset losses from the drop in HITACHI CONSTRMACHADR/2's long position.| MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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