Correlation Between Medicure and Silver Spike
Can any of the company-specific risk be diversified away by investing in both Medicure and Silver Spike 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 Medicure and Silver Spike into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medicure and Silver Spike Investment, you can compare the effects of market volatilities on Medicure and Silver Spike 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 Medicure with a short position of Silver Spike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medicure and Silver Spike.
Diversification Opportunities for Medicure and Silver Spike
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Medicure and Silver is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Medicure and Silver Spike Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silver Spike Investment and Medicure 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 Medicure are associated (or correlated) with Silver Spike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silver Spike Investment has no effect on the direction of Medicure i.e., Medicure and Silver Spike go up and down completely randomly.
Pair Corralation between Medicure and Silver Spike
Assuming the 90 days horizon Medicure is expected to generate 2.98 times less return on investment than Silver Spike. In addition to that, Medicure is 2.02 times more volatile than Silver Spike Investment. It trades about 0.01 of its total potential returns per unit of risk. Silver Spike Investment is currently generating about 0.06 per unit of volatility. If you would invest 835.00 in Silver Spike Investment on August 30, 2024 and sell it today you would earn a total of 453.00 from holding Silver Spike Investment or generate 54.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.75% |
| Values | Daily Returns |
Medicure vs. Silver Spike Investment
Performance |
| Timeline |
| Medicure |
| Silver Spike Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Medicure and Silver Spike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medicure and Silver Spike
The main advantage of trading using opposite Medicure and Silver Spike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medicure position performs unexpectedly, Silver Spike 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 Silver Spike will offset losses from the drop in Silver Spike's long position.| Medicure vs. PayPal Holdings | Medicure vs. Nasdaq Inc | Medicure vs. Choice Hotels International | Medicure vs. Microsoft |
| Silver Spike vs. Entourage Health Corp | Silver Spike vs. Avicanna | Silver Spike vs. Benchmark Botanics | Silver Spike vs. Speakeasy Cannabis Club |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |