Correlation Between MeVis Medical and NORDSTROM
Can any of the company-specific risk be diversified away by investing in both MeVis Medical and NORDSTROM 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 NORDSTROM 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 NORDSTROM Dusseldorf, you can compare the effects of market volatilities on MeVis Medical and NORDSTROM 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 NORDSTROM. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and NORDSTROM.
Diversification Opportunities for MeVis Medical and NORDSTROM
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MeVis and NORDSTROM is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and NORDSTROM Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDSTROM Dusseldorf 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 NORDSTROM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDSTROM Dusseldorf has no effect on the direction of MeVis Medical i.e., MeVis Medical and NORDSTROM go up and down completely randomly.
Pair Corralation between MeVis Medical and NORDSTROM
Assuming the 90 days trading horizon MeVis Medical Solutions is expected to generate 0.3 times more return on investment than NORDSTROM. However, MeVis Medical Solutions is 3.32 times less risky than NORDSTROM. It trades about 0.0 of its potential returns per unit of risk. NORDSTROM Dusseldorf is currently generating about -0.01 per unit of risk. If you would invest 2,400 in MeVis Medical Solutions on August 31, 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 | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
MeVis Medical Solutions vs. NORDSTROM Dusseldorf
Performance |
| Timeline |
| MeVis Medical Solutions |
| NORDSTROM Dusseldorf |
MeVis Medical and NORDSTROM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and NORDSTROM
The main advantage of trading using opposite MeVis Medical and NORDSTROM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical position performs unexpectedly, NORDSTROM 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 NORDSTROM will offset losses from the drop in NORDSTROM's long position.| MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc |
| NORDSTROM vs. Sumitomo Chemical | NORDSTROM vs. SCANDMEDICAL SOLDK 040 | NORDSTROM vs. NISSAN CHEMICAL IND | NORDSTROM vs. MeVis Medical Solutions |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |