Correlation Between Mekonomen and Immunovia Publ
Can any of the company-specific risk be diversified away by investing in both Mekonomen and Immunovia Publ 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 Mekonomen and Immunovia Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mekonomen AB and Immunovia publ AB, you can compare the effects of market volatilities on Mekonomen and Immunovia Publ 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 Mekonomen with a short position of Immunovia Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mekonomen and Immunovia Publ.
Diversification Opportunities for Mekonomen and Immunovia Publ
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mekonomen and Immunovia is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mekonomen AB and Immunovia publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunovia publ AB and Mekonomen 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 Mekonomen AB are associated (or correlated) with Immunovia Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunovia publ AB has no effect on the direction of Mekonomen i.e., Mekonomen and Immunovia Publ go up and down completely randomly.
Pair Corralation between Mekonomen and Immunovia Publ
Assuming the 90 days trading horizon Mekonomen is expected to generate 1.03 times less return on investment than Immunovia Publ. But when comparing it to its historical volatility, Mekonomen AB is 8.01 times less risky than Immunovia Publ. It trades about 0.03 of its potential returns per unit of risk. Immunovia publ AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,898 in Immunovia publ AB on September 4, 2024 and sell it today you would lose (2,810) from holding Immunovia publ AB or give up 96.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mekonomen AB vs. Immunovia publ AB
Performance |
| Timeline |
| Mekonomen AB |
| Immunovia publ AB |
Mekonomen and Immunovia Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mekonomen and Immunovia Publ
The main advantage of trading using opposite Mekonomen and Immunovia Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mekonomen position performs unexpectedly, Immunovia Publ 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 Immunovia Publ will offset losses from the drop in Immunovia Publ's long position.| Mekonomen vs. Clas Ohlson AB | Mekonomen vs. Bilia AB | Mekonomen vs. Byggmax Group AB | Mekonomen vs. Peab AB |
| Immunovia Publ vs. ADDvise Group B | Immunovia Publ vs. Hanza AB | Immunovia Publ vs. Awardit AB | Immunovia Publ vs. Doxa AB |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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