Correlation Between Medincell and Sensorion
Can any of the company-specific risk be diversified away by investing in both Medincell and Sensorion 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 Medincell and Sensorion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medincell SA and Sensorion SA, you can compare the effects of market volatilities on Medincell and Sensorion 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 Medincell with a short position of Sensorion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medincell and Sensorion.
Diversification Opportunities for Medincell and Sensorion
Weak diversification
The 3 months correlation between Medincell and Sensorion is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Medincell SA and Sensorion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensorion SA and Medincell 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 Medincell SA are associated (or correlated) with Sensorion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensorion SA has no effect on the direction of Medincell i.e., Medincell and Sensorion go up and down completely randomly.
Pair Corralation between Medincell and Sensorion
Assuming the 90 days trading horizon Medincell SA is expected to generate 0.26 times more return on investment than Sensorion. However, Medincell SA is 3.89 times less risky than Sensorion. It trades about 0.06 of its potential returns per unit of risk. Sensorion SA is currently generating about -0.24 per unit of risk. If you would invest 1,428 in Medincell SA on January 27, 2025 and sell it today you would earn a total of 69.00 from holding Medincell SA or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medincell SA vs. Sensorion SA
Performance |
| Timeline |
| Medincell SA |
| Sensorion SA |
Medincell and Sensorion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medincell and Sensorion
The main advantage of trading using opposite Medincell and Sensorion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medincell position performs unexpectedly, Sensorion 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 Sensorion will offset losses from the drop in Sensorion's long position.| Medincell vs. Biophytis SA | Medincell vs. Gensight Biologics SA | Medincell vs. OSE Pharma SA | Medincell vs. Abivax SA |
| Sensorion vs. Europlasma SA | Sensorion vs. Biophytis SA | Sensorion vs. Cellectis | Sensorion vs. Innate Pharma |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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