Correlation Between MediciNova and Thermo Fisher
Can any of the company-specific risk be diversified away by investing in both MediciNova and Thermo Fisher 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 MediciNova and Thermo Fisher into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediciNova and Thermo Fisher Scientific, you can compare the effects of market volatilities on MediciNova and Thermo Fisher 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 MediciNova with a short position of Thermo Fisher. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediciNova and Thermo Fisher.
Diversification Opportunities for MediciNova and Thermo Fisher
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MediciNova and Thermo is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding MediciNova and Thermo Fisher Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermo Fisher Scientific and MediciNova 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 MediciNova are associated (or correlated) with Thermo Fisher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermo Fisher Scientific has no effect on the direction of MediciNova i.e., MediciNova and Thermo Fisher go up and down completely randomly.
Pair Corralation between MediciNova and Thermo Fisher
Given the investment horizon of 90 days MediciNova is expected to generate 3.81 times more return on investment than Thermo Fisher. However, MediciNova is 3.81 times more volatile than Thermo Fisher Scientific. It trades about 0.16 of its potential returns per unit of risk. Thermo Fisher Scientific is currently generating about 0.07 per unit of risk. If you would invest 190.00 in MediciNova on September 20, 2024 and sell it today you would earn a total of 25.00 from holding MediciNova or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MediciNova vs. Thermo Fisher Scientific
Performance |
| Timeline |
| MediciNova |
| Thermo Fisher Scientific |
MediciNova and Thermo Fisher Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediciNova and Thermo Fisher
The main advantage of trading using opposite MediciNova and Thermo Fisher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediciNova position performs unexpectedly, Thermo Fisher 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 Thermo Fisher will offset losses from the drop in Thermo Fisher's long position.| MediciNova vs. Aerovate Therapeutics | MediciNova vs. Adagene | MediciNova vs. Acrivon Therapeutics, Common | MediciNova vs. Rezolute |
| Thermo Fisher vs. Molecular Partners AG | Thermo Fisher vs. MediciNova | Thermo Fisher vs. Anebulo Pharmaceuticals | Thermo Fisher vs. Shattuck Labs |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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