Correlation Between MeVis Medical and HomeToGo
Can any of the company-specific risk be diversified away by investing in both MeVis Medical and HomeToGo 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 HomeToGo 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 HomeToGo SE, you can compare the effects of market volatilities on MeVis Medical and HomeToGo 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 HomeToGo. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and HomeToGo.
Diversification Opportunities for MeVis Medical and HomeToGo
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MeVis and HomeToGo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and HomeToGo SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeToGo SE 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 HomeToGo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomeToGo SE has no effect on the direction of MeVis Medical i.e., MeVis Medical and HomeToGo go up and down completely randomly.
Pair Corralation between MeVis Medical and HomeToGo
Assuming the 90 days trading horizon MeVis Medical Solutions is expected to generate 0.3 times more return on investment than HomeToGo. However, MeVis Medical Solutions is 3.34 times less risky than HomeToGo. It trades about 0.0 of its potential returns per unit of risk. HomeToGo SE is currently generating about -0.13 per unit of risk. If you would invest 2,400 in MeVis Medical Solutions on August 29, 2024 and sell it today you would earn a total of 0.00 from holding MeVis Medical Solutions or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeVis Medical Solutions vs. HomeToGo SE
Performance |
| Timeline |
| MeVis Medical Solutions |
| HomeToGo SE |
MeVis Medical and HomeToGo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and HomeToGo
The main advantage of trading using opposite MeVis Medical and HomeToGo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical position performs unexpectedly, HomeToGo 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 HomeToGo will offset losses from the drop in HomeToGo's long position.| MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc |
| HomeToGo vs. Ryanair Holdings plc | HomeToGo vs. SYSTEMAIR AB | HomeToGo vs. Harmony Gold Mining | HomeToGo vs. Westinghouse Air Brake |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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