Correlation Between Medicalg and Grupa HRC
Can any of the company-specific risk be diversified away by investing in both Medicalg and Grupa HRC 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 Medicalg and Grupa HRC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medicalg and Grupa HRC SA, you can compare the effects of market volatilities on Medicalg and Grupa HRC 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 Medicalg with a short position of Grupa HRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medicalg and Grupa HRC.
Diversification Opportunities for Medicalg and Grupa HRC
Poor diversification
The 3 months correlation between Medicalg and Grupa is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Medicalg and Grupa HRC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa HRC SA and Medicalg 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 Medicalg are associated (or correlated) with Grupa HRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa HRC SA has no effect on the direction of Medicalg i.e., Medicalg and Grupa HRC go up and down completely randomly.
Pair Corralation between Medicalg and Grupa HRC
Assuming the 90 days trading horizon Medicalg is expected to generate 0.69 times more return on investment than Grupa HRC. However, Medicalg is 1.44 times less risky than Grupa HRC. It trades about -0.03 of its potential returns per unit of risk. Grupa HRC SA is currently generating about -0.14 per unit of risk. If you would invest 2,666 in Medicalg on November 3, 2024 and sell it today you would lose (526.00) from holding Medicalg or give up 19.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 52.89% |
| Values | Daily Returns |
Medicalg vs. Grupa HRC SA
Performance |
| Timeline |
| Medicalg |
| Grupa HRC SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Medicalg and Grupa HRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medicalg and Grupa HRC
The main advantage of trading using opposite Medicalg and Grupa HRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medicalg position performs unexpectedly, Grupa HRC 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 Grupa HRC will offset losses from the drop in Grupa HRC's long position.| Medicalg vs. Adiuvo Investment SA | Medicalg vs. Asseco Business Solutions | Medicalg vs. Detalion Games SA | Medicalg vs. Movie Games SA |
| Grupa HRC vs. GreenX Metals | Grupa HRC vs. Drago entertainment SA | Grupa HRC vs. Play2Chill SA | Grupa HRC vs. Echo Investment SA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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