Correlation Between Metacon AB and Spago Nanomedical
Can any of the company-specific risk be diversified away by investing in both Metacon AB and Spago Nanomedical 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 Metacon AB and Spago Nanomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metacon AB and Spago Nanomedical AB, you can compare the effects of market volatilities on Metacon AB and Spago Nanomedical 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 Metacon AB with a short position of Spago Nanomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metacon AB and Spago Nanomedical.
Diversification Opportunities for Metacon AB and Spago Nanomedical
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Metacon and Spago is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Metacon AB and Spago Nanomedical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spago Nanomedical and Metacon AB 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 Metacon AB are associated (or correlated) with Spago Nanomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spago Nanomedical has no effect on the direction of Metacon AB i.e., Metacon AB and Spago Nanomedical go up and down completely randomly.
Pair Corralation between Metacon AB and Spago Nanomedical
Assuming the 90 days trading horizon Metacon AB is expected to under-perform the Spago Nanomedical. In addition to that, Metacon AB is 1.21 times more volatile than Spago Nanomedical AB. It trades about -0.32 of its total potential returns per unit of risk. Spago Nanomedical AB is currently generating about 0.26 per unit of volatility. If you would invest 22.00 in Spago Nanomedical AB on November 7, 2024 and sell it today you would earn a total of 5.00 from holding Spago Nanomedical AB or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metacon AB vs. Spago Nanomedical AB
Performance |
| Timeline |
| Metacon AB |
| Spago Nanomedical |
Metacon AB and Spago Nanomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metacon AB and Spago Nanomedical
The main advantage of trading using opposite Metacon AB and Spago Nanomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metacon AB position performs unexpectedly, Spago Nanomedical 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 Spago Nanomedical will offset losses from the drop in Spago Nanomedical's long position.| Metacon AB vs. White Pearl Technology | Metacon AB vs. SolTech Energy Sweden | Metacon AB vs. New Nordic Healthbrands | Metacon AB vs. AcadeMedia AB |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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