Correlation Between Mercedes Benz and WESANA HEALTH
Can any of the company-specific risk be diversified away by investing in both Mercedes Benz and WESANA HEALTH 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 Mercedes Benz and WESANA HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercedes Benz Group AG and WESANA HEALTH HOLD, you can compare the effects of market volatilities on Mercedes Benz and WESANA HEALTH 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 Mercedes Benz with a short position of WESANA HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercedes Benz and WESANA HEALTH.
Diversification Opportunities for Mercedes Benz and WESANA HEALTH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mercedes and WESANA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mercedes Benz Group AG and WESANA HEALTH HOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESANA HEALTH HOLD and Mercedes Benz 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 Mercedes Benz Group AG are associated (or correlated) with WESANA HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESANA HEALTH HOLD has no effect on the direction of Mercedes Benz i.e., Mercedes Benz and WESANA HEALTH go up and down completely randomly.
Pair Corralation between Mercedes Benz and WESANA HEALTH
If you would invest 5,333 in Mercedes Benz Group AG on October 28, 2024 and sell it today you would earn a total of 347.00 from holding Mercedes Benz Group AG or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Mercedes Benz Group AG vs. WESANA HEALTH HOLD
Performance |
| Timeline |
| Mercedes Benz Group |
| WESANA HEALTH HOLD |
Mercedes Benz and WESANA HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercedes Benz and WESANA HEALTH
The main advantage of trading using opposite Mercedes Benz and WESANA HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercedes Benz position performs unexpectedly, WESANA HEALTH 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 WESANA HEALTH will offset losses from the drop in WESANA HEALTH's long position.| Mercedes Benz vs. Performance Food Group | Mercedes Benz vs. DXC Technology Co | Mercedes Benz vs. X FAB Silicon Foundries | Mercedes Benz vs. CAL MAINE FOODS |
| WESANA HEALTH vs. Novo Nordisk AS | WESANA HEALTH vs. CSL LTD SPONADR | WESANA HEALTH vs. CSL Limited | WESANA HEALTH vs. Mercedes Benz Group AG |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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