Correlation Between Mitesco and EGF Theramed
Can any of the company-specific risk be diversified away by investing in both Mitesco and EGF Theramed 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 Mitesco and EGF Theramed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitesco and EGF Theramed Health, you can compare the effects of market volatilities on Mitesco and EGF Theramed 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 Mitesco with a short position of EGF Theramed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitesco and EGF Theramed.
Diversification Opportunities for Mitesco and EGF Theramed
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mitesco and EGF is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mitesco and EGF Theramed Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGF Theramed Health and Mitesco 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 Mitesco are associated (or correlated) with EGF Theramed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGF Theramed Health has no effect on the direction of Mitesco i.e., Mitesco and EGF Theramed go up and down completely randomly.
Pair Corralation between Mitesco and EGF Theramed
Given the investment horizon of 90 days Mitesco is expected to generate 4.25 times less return on investment than EGF Theramed. But when comparing it to its historical volatility, Mitesco is 1.25 times less risky than EGF Theramed. It trades about 0.08 of its potential returns per unit of risk. EGF Theramed Health is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 5.70 in EGF Theramed Health on August 27, 2024 and sell it today you would earn a total of 15.30 from holding EGF Theramed Health or generate 268.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mitesco vs. EGF Theramed Health
Performance |
| Timeline |
| Mitesco |
| EGF Theramed Health |
Mitesco and EGF Theramed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitesco and EGF Theramed
The main advantage of trading using opposite Mitesco and EGF Theramed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitesco position performs unexpectedly, EGF Theramed 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 EGF Theramed will offset losses from the drop in EGF Theramed's long position.| Mitesco vs. GE HealthCare Technologies | Mitesco vs. Veeva Systems Class | Mitesco vs. Solventum Corp | Mitesco vs. HealthEquity |
| EGF Theramed vs. GE HealthCare Technologies | EGF Theramed vs. Veeva Systems Class | EGF Theramed vs. Solventum Corp | EGF Theramed vs. HealthEquity |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |