Correlation Between Mednow and Stepan
Can any of the company-specific risk be diversified away by investing in both Mednow and Stepan 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 Mednow and Stepan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mednow Inc and Stepan Company, you can compare the effects of market volatilities on Mednow and Stepan 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 Mednow with a short position of Stepan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mednow and Stepan.
Diversification Opportunities for Mednow and Stepan
Pay attention - limited upside
The 3 months correlation between Mednow and Stepan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mednow Inc and Stepan Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepan Company and Mednow 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 Mednow Inc are associated (or correlated) with Stepan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepan Company has no effect on the direction of Mednow i.e., Mednow and Stepan go up and down completely randomly.
Pair Corralation between Mednow and Stepan
If you would invest 7,197 in Stepan Company on September 1, 2024 and sell it today you would earn a total of 493.00 from holding Stepan Company or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mednow Inc vs. Stepan Company
Performance |
| Timeline |
| Mednow Inc |
| Stepan Company |
Mednow and Stepan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mednow and Stepan
The main advantage of trading using opposite Mednow and Stepan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mednow position performs unexpectedly, Stepan 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 Stepan will offset losses from the drop in Stepan's long position.| Mednow vs. GE HealthCare Technologies | Mednow vs. Veeva Systems Class | Mednow vs. M3 Inc | Mednow vs. Solventum Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |