Correlation Between Medistim ASA and Gyldendal ASA
Can any of the company-specific risk be diversified away by investing in both Medistim ASA and Gyldendal ASA 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 Medistim ASA and Gyldendal ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medistim ASA and Gyldendal ASA, you can compare the effects of market volatilities on Medistim ASA and Gyldendal ASA 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 Medistim ASA with a short position of Gyldendal ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medistim ASA and Gyldendal ASA.
Diversification Opportunities for Medistim ASA and Gyldendal ASA
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Medistim and Gyldendal is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Medistim ASA and Gyldendal ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gyldendal ASA and Medistim ASA 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 Medistim ASA are associated (or correlated) with Gyldendal ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gyldendal ASA has no effect on the direction of Medistim ASA i.e., Medistim ASA and Gyldendal ASA go up and down completely randomly.
Pair Corralation between Medistim ASA and Gyldendal ASA
Assuming the 90 days trading horizon Medistim ASA is expected to generate 0.53 times more return on investment than Gyldendal ASA. However, Medistim ASA is 1.88 times less risky than Gyldendal ASA. It trades about 0.18 of its potential returns per unit of risk. Gyldendal ASA is currently generating about -0.01 per unit of risk. If you would invest 14,950 in Medistim ASA on November 27, 2024 and sell it today you would earn a total of 850.00 from holding Medistim ASA or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medistim ASA vs. Gyldendal ASA
Performance |
| Timeline |
| Medistim ASA |
| Gyldendal ASA |
Medistim ASA and Gyldendal ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medistim ASA and Gyldendal ASA
The main advantage of trading using opposite Medistim ASA and Gyldendal ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medistim ASA position performs unexpectedly, Gyldendal ASA 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 Gyldendal ASA will offset losses from the drop in Gyldendal ASA's long position.| Medistim ASA vs. Kitron ASA | Medistim ASA vs. Photocure | Medistim ASA vs. AF Gruppen ASA | Medistim ASA vs. Borregaard ASA |
| Gyldendal ASA vs. Arendals Fossekompani ASA | Gyldendal ASA vs. Byggma | Gyldendal ASA vs. AF Gruppen ASA | Gyldendal ASA vs. Medistim ASA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |