Correlation Between Maven Wireless and Episurf Medical
Can any of the company-specific risk be diversified away by investing in both Maven Wireless and Episurf 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 Maven Wireless and Episurf Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maven Wireless Sweden and Episurf Medical AB, you can compare the effects of market volatilities on Maven Wireless and Episurf 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 Maven Wireless with a short position of Episurf Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maven Wireless and Episurf Medical.
Diversification Opportunities for Maven Wireless and Episurf Medical
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Maven and Episurf is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden and Episurf Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Episurf Medical AB and Maven Wireless 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 Maven Wireless Sweden are associated (or correlated) with Episurf Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Episurf Medical AB has no effect on the direction of Maven Wireless i.e., Maven Wireless and Episurf Medical go up and down completely randomly.
Pair Corralation between Maven Wireless and Episurf Medical
Assuming the 90 days trading horizon Maven Wireless Sweden is expected to under-perform the Episurf Medical. But the stock apears to be less risky and, when comparing its historical volatility, Maven Wireless Sweden is 1.52 times less risky than Episurf Medical. The stock trades about -0.02 of its potential returns per unit of risk. The Episurf Medical AB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Episurf Medical AB on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Episurf Medical AB or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maven Wireless Sweden vs. Episurf Medical AB
Performance |
| Timeline |
| Maven Wireless Sweden |
| Episurf Medical AB |
Maven Wireless and Episurf Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maven Wireless and Episurf Medical
The main advantage of trading using opposite Maven Wireless and Episurf Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maven Wireless position performs unexpectedly, Episurf 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 Episurf Medical will offset losses from the drop in Episurf Medical's long position.| Maven Wireless vs. Embracer Group AB | Maven Wireless vs. Samhllsbyggnadsbolaget i Norden | Maven Wireless vs. Evolution AB | Maven Wireless vs. Stillfront Group AB |
| Episurf Medical vs. BioInvent International AB | Episurf Medical vs. Cantargia AB | Episurf Medical vs. Bonesupport Holding AB | Episurf Medical vs. Bactiguard 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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