Correlation Between MediPress Health and Axilion Smart
Can any of the company-specific risk be diversified away by investing in both MediPress Health and Axilion Smart 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 MediPress Health and Axilion Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediPress Health Limited Partnership and Axilion Smart Mobility, you can compare the effects of market volatilities on MediPress Health and Axilion Smart 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 MediPress Health with a short position of Axilion Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediPress Health and Axilion Smart.
Diversification Opportunities for MediPress Health and Axilion Smart
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MediPress and Axilion is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding MediPress Health Limited Partn and Axilion Smart Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axilion Smart Mobility and MediPress Health 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 MediPress Health Limited Partnership are associated (or correlated) with Axilion Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axilion Smart Mobility has no effect on the direction of MediPress Health i.e., MediPress Health and Axilion Smart go up and down completely randomly.
Pair Corralation between MediPress Health and Axilion Smart
Assuming the 90 days trading horizon MediPress Health Limited Partnership is expected to generate 1.01 times more return on investment than Axilion Smart. However, MediPress Health is 1.01 times more volatile than Axilion Smart Mobility. It trades about 0.03 of its potential returns per unit of risk. Axilion Smart Mobility is currently generating about -0.01 per unit of risk. If you would invest 6,850 in MediPress Health Limited Partnership on September 2, 2024 and sell it today you would earn a total of 820.00 from holding MediPress Health Limited Partnership or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.48% |
| Values | Daily Returns |
MediPress Health Limited Partn vs. Axilion Smart Mobility
Performance |
| Timeline |
| MediPress Health Lim |
| Axilion Smart Mobility |
MediPress Health and Axilion Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediPress Health and Axilion Smart
The main advantage of trading using opposite MediPress Health and Axilion Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediPress Health position performs unexpectedly, Axilion Smart 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 Axilion Smart will offset losses from the drop in Axilion Smart's long position.| MediPress Health vs. Nice | MediPress Health vs. The Gold Bond | MediPress Health vs. Bank Leumi Le Israel | MediPress Health vs. ICL Israel Chemicals |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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