Correlation Between Medigus and Paragon 28
Can any of the company-specific risk be diversified away by investing in both Medigus and Paragon 28 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 Medigus and Paragon 28 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medigus Ltd ADR and Paragon 28, you can compare the effects of market volatilities on Medigus and Paragon 28 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 Medigus with a short position of Paragon 28. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medigus and Paragon 28.
Diversification Opportunities for Medigus and Paragon 28
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Medigus and Paragon is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Medigus Ltd ADR and Paragon 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paragon 28 and Medigus 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 Medigus Ltd ADR are associated (or correlated) with Paragon 28. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paragon 28 has no effect on the direction of Medigus i.e., Medigus and Paragon 28 go up and down completely randomly.
Pair Corralation between Medigus and Paragon 28
Given the investment horizon of 90 days Medigus Ltd ADR is expected to under-perform the Paragon 28. In addition to that, Medigus is 1.12 times more volatile than Paragon 28. It trades about -0.04 of its total potential returns per unit of risk. Paragon 28 is currently generating about -0.01 per unit of volatility. If you would invest 1,938 in Paragon 28 on August 26, 2024 and sell it today you would lose (934.00) from holding Paragon 28 or give up 48.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.87% |
| Values | Daily Returns |
Medigus Ltd ADR vs. Paragon 28
Performance |
| Timeline |
| Medigus Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Paragon 28 |
Medigus and Paragon 28 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medigus and Paragon 28
The main advantage of trading using opposite Medigus and Paragon 28 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medigus position performs unexpectedly, Paragon 28 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 Paragon 28 will offset losses from the drop in Paragon 28's long position.| Medigus vs. Brainsway | Medigus vs. Delcath Systems | Medigus vs. Paragon 28 | Medigus vs. Nexalin Technology |
| Paragon 28 vs. Pulmonx Corp | Paragon 28 vs. Iradimed Co | Paragon 28 vs. Orthofix Medical | Paragon 28 vs. Neuropace |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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