Correlation Between Media and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both Media and Clinical Laserthermia 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 Media and Clinical Laserthermia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media and Games and Clinical Laserthermia Systems, you can compare the effects of market volatilities on Media and Clinical Laserthermia 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 Media with a short position of Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and Clinical Laserthermia.
Diversification Opportunities for Media and Clinical Laserthermia
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Media and Clinical is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia and Media 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 Media and Games are associated (or correlated) with Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of Media i.e., Media and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between Media and Clinical Laserthermia
Assuming the 90 days trading horizon Media and Games is expected to generate 0.9 times more return on investment than Clinical Laserthermia. However, Media and Games is 1.11 times less risky than Clinical Laserthermia. It trades about 0.16 of its potential returns per unit of risk. Clinical Laserthermia Systems is currently generating about -0.04 per unit of risk. If you would invest 1,836 in Media and Games on September 2, 2024 and sell it today you would earn a total of 2,144 from holding Media and Games or generate 116.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media and Games vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| Media and Games |
| Clinical Laserthermia |
Media and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and Clinical Laserthermia
The main advantage of trading using opposite Media and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia's long position.| Media vs. MilDef Group AB | Media vs. Fractal Gaming Group | Media vs. KABE Group AB | Media vs. IAR Systems Group |
| Clinical Laserthermia vs. Xvivo Perfusion AB | Clinical Laserthermia vs. BICO Group AB | Clinical Laserthermia vs. Stille AB | Clinical Laserthermia vs. SpectraCure AB |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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