Correlation Between MeVis Medical and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both MeVis Medical and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES 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 SINGAPORE AIRLINES, you can compare the effects of market volatilities on MeVis Medical and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and SINGAPORE AIRLINES.
Diversification Opportunities for MeVis Medical and SINGAPORE AIRLINES
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MeVis and SINGAPORE is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE AIRLINES has no effect on the direction of MeVis Medical i.e., MeVis Medical and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between MeVis Medical and SINGAPORE AIRLINES
Assuming the 90 days trading horizon MeVis Medical is expected to generate 16.63 times less return on investment than SINGAPORE AIRLINES. In addition to that, MeVis Medical is 1.12 times more volatile than SINGAPORE AIRLINES. It trades about 0.0 of its total potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.05 per unit of volatility. If you would invest 378.00 in SINGAPORE AIRLINES on September 1, 2024 and sell it today you would earn a total of 62.00 from holding SINGAPORE AIRLINES or generate 16.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeVis Medical Solutions vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| MeVis Medical Solutions |
| SINGAPORE AIRLINES |
MeVis Medical and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and SINGAPORE AIRLINES
The main advantage of trading using opposite MeVis Medical and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical position performs unexpectedly, SINGAPORE AIRLINES 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 SINGAPORE AIRLINES will offset losses from the drop in SINGAPORE AIRLINES's long position.| MeVis Medical vs. G III Apparel Group | MeVis Medical vs. AM EAGLE OUTFITTERS | MeVis Medical vs. RYU Apparel | MeVis Medical vs. Fast Retailing Co |
| SINGAPORE AIRLINES vs. MAGNUM MINING EXP | SINGAPORE AIRLINES vs. FIREWEED METALS P | SINGAPORE AIRLINES vs. Alfa Financial Software | SINGAPORE AIRLINES vs. Coeur Mining |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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