Correlation Between Moury Construct and Sequana Medical

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Can any of the company-specific risk be diversified away by investing in both Moury Construct and Sequana Medical 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 Moury Construct and Sequana Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moury Construct SA and Sequana Medical NV, you can compare the effects of market volatilities on Moury Construct and Sequana Medical 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 Moury Construct with a short position of Sequana Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moury Construct and Sequana Medical.

Diversification Opportunities for Moury Construct and Sequana Medical

MourySequanaDiversified AwayMourySequanaDiversified Away100%
-0.54
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Moury and Sequana is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Moury Construct SA and Sequana Medical NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sequana Medical NV and Moury Construct 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 Moury Construct SA are associated (or correlated) with Sequana Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sequana Medical NV has no effect on the direction of Moury Construct i.e., Moury Construct and Sequana Medical go up and down completely randomly.

Pair Corralation between Moury Construct and Sequana Medical

Assuming the 90 days trading horizon Moury Construct SA is expected to generate 0.57 times more return on investment than Sequana Medical. However, Moury Construct SA is 1.77 times less risky than Sequana Medical. It trades about 0.07 of its potential returns per unit of risk. Sequana Medical NV is currently generating about -0.39 per unit of risk. If you would invest  47,000  in Moury Construct SA on November 24, 2024 and sell it today you would earn a total of  1,600  from holding Moury Construct SA or generate 3.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Moury Construct SA  vs.  Sequana Medical NV

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 050100150200250300350
JavaScript chart by amCharts 3.21.15MOUR SEQUA
       Timeline  
Moury Construct SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Moury Construct SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Moury Construct is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb440460480500520540
Sequana Medical NV 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sequana Medical NV are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Sequana Medical sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb11.522.533.54

Moury Construct and Sequana Medical Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.3-2.47-1.64-0.810.00.771.552.343.12 0.020.040.060.08
JavaScript chart by amCharts 3.21.15MOUR SEQUA
       Returns  

Pair Trading with Moury Construct and Sequana Medical

The main advantage of trading using opposite Moury Construct and Sequana Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moury Construct position performs unexpectedly, Sequana Medical 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 Sequana Medical will offset losses from the drop in Sequana Medical's long position.
The idea behind Moury Construct SA and Sequana Medical NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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