Correlation Between MeVis Medical and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both MeVis Medical and Selective Insurance 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 Selective Insurance 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 Selective Insurance Group, you can compare the effects of market volatilities on MeVis Medical and Selective Insurance 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 Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and Selective Insurance.
Diversification Opportunities for MeVis Medical and Selective Insurance
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MeVis and Selective is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance 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 Selective Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selective Insurance has no effect on the direction of MeVis Medical i.e., MeVis Medical and Selective Insurance go up and down completely randomly.
Pair Corralation between MeVis Medical and Selective Insurance
Assuming the 90 days trading horizon MeVis Medical Solutions is expected to generate 0.41 times more return on investment than Selective Insurance. However, MeVis Medical Solutions is 2.44 times less risky than Selective Insurance. It trades about 0.12 of its potential returns per unit of risk. Selective Insurance Group is currently generating about 0.02 per unit of risk. If you would invest 2,380 in MeVis Medical Solutions on August 25, 2024 and sell it today you would earn a total of 60.00 from holding MeVis Medical Solutions or generate 2.52% 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. Selective Insurance Group
Performance |
| Timeline |
| MeVis Medical Solutions |
| Selective Insurance |
MeVis Medical and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and Selective Insurance
The main advantage of trading using opposite MeVis Medical and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical position performs unexpectedly, Selective Insurance 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 Selective Insurance will offset losses from the drop in Selective Insurance's long position.| MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc | MeVis Medical vs. Apple Inc |
| Selective Insurance vs. Pembina Pipeline Corp | Selective Insurance vs. Merit Medical Systems | Selective Insurance vs. MeVis Medical Solutions | Selective Insurance vs. Clearside Biomedical |
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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