Correlation Between MediPress Health and Gamatronic Electronic
Can any of the company-specific risk be diversified away by investing in both MediPress Health and Gamatronic Electronic 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 Gamatronic Electronic 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 Gamatronic Electronic Industries, you can compare the effects of market volatilities on MediPress Health and Gamatronic Electronic 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 Gamatronic Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediPress Health and Gamatronic Electronic.
Diversification Opportunities for MediPress Health and Gamatronic Electronic
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MediPress and Gamatronic is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding MediPress Health Limited Partn and Gamatronic Electronic Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamatronic Electronic 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 Gamatronic Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamatronic Electronic has no effect on the direction of MediPress Health i.e., MediPress Health and Gamatronic Electronic go up and down completely randomly.
Pair Corralation between MediPress Health and Gamatronic Electronic
Assuming the 90 days trading horizon MediPress Health Limited Partnership is expected to generate 1.21 times more return on investment than Gamatronic Electronic. However, MediPress Health is 1.21 times more volatile than Gamatronic Electronic Industries. It trades about 0.37 of its potential returns per unit of risk. Gamatronic Electronic Industries is currently generating about 0.06 per unit of risk. If you would invest 6,660 in MediPress Health Limited Partnership on September 1, 2024 and sell it today you would earn a total of 1,010 from holding MediPress Health Limited Partnership or generate 15.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
MediPress Health Limited Partn vs. Gamatronic Electronic Industri
Performance |
| Timeline |
| MediPress Health Lim |
| Gamatronic Electronic |
MediPress Health and Gamatronic Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediPress Health and Gamatronic Electronic
The main advantage of trading using opposite MediPress Health and Gamatronic Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediPress Health position performs unexpectedly, Gamatronic Electronic 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 Gamatronic Electronic will offset losses from the drop in Gamatronic Electronic'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 |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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