Correlation Between MeVis Medical and Tradegate
Can any of the company-specific risk be diversified away by investing in both MeVis Medical and Tradegate 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 Tradegate 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 Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on MeVis Medical and Tradegate 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 Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and Tradegate.
Diversification Opportunities for MeVis Medical and Tradegate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MeVis and Tradegate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap 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 Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of MeVis Medical i.e., MeVis Medical and Tradegate go up and down completely randomly.
Pair Corralation between MeVis Medical and Tradegate
Assuming the 90 days trading horizon MeVis Medical Solutions is expected to generate 1.96 times more return on investment than Tradegate. However, MeVis Medical is 1.96 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about 0.25 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about 0.0 per unit of risk. If you would invest 2,400 in MeVis Medical Solutions on October 24, 2024 and sell it today you would earn a total of 80.00 from holding MeVis Medical Solutions or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MeVis Medical Solutions vs. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| MeVis Medical Solutions |
| Tradegate AG Wertpap |
MeVis Medical and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and Tradegate
The main advantage of trading using opposite MeVis Medical and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate's long position.| MeVis Medical vs. GRIFFIN MINING LTD | MeVis Medical vs. SPORT LISBOA E | MeVis Medical vs. USWE SPORTS AB | MeVis Medical vs. Harmony Gold Mining |
| Tradegate vs. KENEDIX OFFICE INV | Tradegate vs. Corporate Office Properties | Tradegate vs. T Mobile | Tradegate vs. Autohome ADR |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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