Correlation Between Mantex AB and Redsense Medical
Can any of the company-specific risk be diversified away by investing in both Mantex AB and Redsense Medical 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 Mantex AB and Redsense Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mantex AB and Redsense Medical AB, you can compare the effects of market volatilities on Mantex AB and Redsense Medical 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 Mantex AB with a short position of Redsense Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mantex AB and Redsense Medical.
Diversification Opportunities for Mantex AB and Redsense Medical
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mantex and Redsense is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mantex AB and Redsense Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Redsense Medical and Mantex AB 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 Mantex AB are associated (or correlated) with Redsense Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Redsense Medical has no effect on the direction of Mantex AB i.e., Mantex AB and Redsense Medical go up and down completely randomly.
Pair Corralation between Mantex AB and Redsense Medical
Assuming the 90 days trading horizon Mantex AB is expected to under-perform the Redsense Medical. In addition to that, Mantex AB is 1.02 times more volatile than Redsense Medical AB. It trades about -0.13 of its total potential returns per unit of risk. Redsense Medical AB is currently generating about 0.0 per unit of volatility. If you would invest 994.00 in Redsense Medical AB on September 1, 2024 and sell it today you would lose (284.00) from holding Redsense Medical AB or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.26% |
| Values | Daily Returns |
Mantex AB vs. Redsense Medical AB
Performance |
| Timeline |
| Mantex AB |
| Redsense Medical |
Mantex AB and Redsense Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mantex AB and Redsense Medical
The main advantage of trading using opposite Mantex AB and Redsense Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mantex AB position performs unexpectedly, Redsense Medical 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 Redsense Medical will offset losses from the drop in Redsense Medical's long position.| Mantex AB vs. Addtech AB | Mantex AB vs. Indutrade AB | Mantex AB vs. Lifco AB | Mantex AB vs. NIBE Industrier AB |
| Redsense Medical vs. AddLife AB | Redsense Medical vs. Biotage AB | Redsense Medical vs. Synsam AB | Redsense Medical vs. Bonesupport Holding 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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