Correlation Between Medicalg and Saule Technologies
Can any of the company-specific risk be diversified away by investing in both Medicalg and Saule Technologies 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 Saule Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medicalg and Saule Technologies SA, you can compare the effects of market volatilities on Medicalg and Saule Technologies 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 Saule Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medicalg and Saule Technologies.
Diversification Opportunities for Medicalg and Saule Technologies
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Medicalg and Saule is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Medicalg and Saule Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saule Technologies 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 Saule Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saule Technologies has no effect on the direction of Medicalg i.e., Medicalg and Saule Technologies go up and down completely randomly.
Pair Corralation between Medicalg and Saule Technologies
Assuming the 90 days trading horizon Medicalg is expected to generate 1.07 times more return on investment than Saule Technologies. However, Medicalg is 1.07 times more volatile than Saule Technologies SA. It trades about 0.02 of its potential returns per unit of risk. Saule Technologies SA is currently generating about -0.06 per unit of risk. If you would invest 2,010 in Medicalg on September 1, 2024 and sell it today you would lose (70.00) from holding Medicalg or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medicalg vs. Saule Technologies SA
Performance |
| Timeline |
| Medicalg |
| Saule Technologies |
Medicalg and Saule Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medicalg and Saule Technologies
The main advantage of trading using opposite Medicalg and Saule Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medicalg position performs unexpectedly, Saule Technologies 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 Saule Technologies will offset losses from the drop in Saule Technologies' long position.| Medicalg vs. Asseco Business Solutions | Medicalg vs. Detalion Games SA | Medicalg vs. Asseco South Eastern | Medicalg vs. CFI Holding SA |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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