Correlation Between MediPress Health and Nice
Can any of the company-specific risk be diversified away by investing in both MediPress Health and Nice 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 Nice 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 Nice, you can compare the effects of market volatilities on MediPress Health and Nice 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 Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediPress Health and Nice.
Diversification Opportunities for MediPress Health and Nice
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between MediPress and Nice is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding MediPress Health Limited Partn and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice 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 Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of MediPress Health i.e., MediPress Health and Nice go up and down completely randomly.
Pair Corralation between MediPress Health and Nice
Assuming the 90 days trading horizon MediPress Health Limited Partnership is expected to under-perform the Nice. But the stock apears to be less risky and, when comparing its historical volatility, MediPress Health Limited Partnership is 1.54 times less risky than Nice. The stock trades about -0.01 of its potential returns per unit of risk. The Nice is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,478,000 in Nice on August 29, 2024 and sell it today you would earn a total of 142,000 from holding Nice or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.83% |
| Values | Daily Returns |
MediPress Health Limited Partn vs. Nice
Performance |
| Timeline |
| MediPress Health Lim |
| Nice |
MediPress Health and Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediPress Health and Nice
The main advantage of trading using opposite MediPress Health and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediPress Health position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |