Correlation Between Mdica Sur and BHP
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By analyzing existing cross correlation between Mdica Sur SAB and BHP Group, you can compare the effects of market volatilities on Mdica Sur and BHP 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 Mdica Sur with a short position of BHP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mdica Sur and BHP.
Diversification Opportunities for Mdica Sur and BHP
Pay attention - limited upside
The 3 months correlation between Mdica and BHP is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mdica Sur SAB and BHP Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHP Group and Mdica Sur 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 Mdica Sur SAB are associated (or correlated) with BHP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHP Group has no effect on the direction of Mdica Sur i.e., Mdica Sur and BHP go up and down completely randomly.
Pair Corralation between Mdica Sur and BHP
Assuming the 90 days trading horizon Mdica Sur SAB is expected to under-perform the BHP. But the stock apears to be less risky and, when comparing its historical volatility, Mdica Sur SAB is 1.18 times less risky than BHP. The stock trades about -0.05 of its potential returns per unit of risk. The BHP Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 93,755 in BHP Group on September 1, 2024 and sell it today you would earn a total of 20,165 from holding BHP Group or generate 21.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mdica Sur SAB vs. BHP Group
Performance |
| Timeline |
| Mdica Sur SAB |
| BHP Group |
Mdica Sur and BHP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mdica Sur and BHP
The main advantage of trading using opposite Mdica Sur and BHP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mdica Sur position performs unexpectedly, BHP 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 BHP will offset losses from the drop in BHP's long position.| Mdica Sur vs. Honeywell International | Mdica Sur vs. UnitedHealth Group Incorporated | Mdica Sur vs. ConocoPhillips | Mdica Sur vs. Lockheed Martin |
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.
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