Correlation Between Mercator Medical and Altustfi
Can any of the company-specific risk be diversified away by investing in both Mercator Medical and Altustfi 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 Mercator Medical and Altustfi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercator Medical SA and Altustfi, you can compare the effects of market volatilities on Mercator Medical and Altustfi 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 Mercator Medical with a short position of Altustfi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercator Medical and Altustfi.
Diversification Opportunities for Mercator Medical and Altustfi
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mercator and Altustfi is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Mercator Medical SA and Altustfi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altustfi and Mercator Medical 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 Mercator Medical SA are associated (or correlated) with Altustfi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altustfi has no effect on the direction of Mercator Medical i.e., Mercator Medical and Altustfi go up and down completely randomly.
Pair Corralation between Mercator Medical and Altustfi
Assuming the 90 days trading horizon Mercator Medical SA is expected to under-perform the Altustfi. But the stock apears to be less risky and, when comparing its historical volatility, Mercator Medical SA is 1.92 times less risky than Altustfi. The stock trades about -0.09 of its potential returns per unit of risk. The Altustfi is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 188.00 in Altustfi on December 1, 2024 and sell it today you would earn a total of 9.00 from holding Altustfi or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercator Medical SA vs. Altustfi
Performance |
| Timeline |
| Mercator Medical |
| Altustfi |
Mercator Medical and Altustfi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercator Medical and Altustfi
The main advantage of trading using opposite Mercator Medical and Altustfi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercator Medical position performs unexpectedly, Altustfi 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 Altustfi will offset losses from the drop in Altustfi's long position.| Mercator Medical vs. Igoria Trade SA | Mercator Medical vs. Road Studio SA | Mercator Medical vs. Gamedust SA | Mercator Medical vs. Skyline Investment SA |
| Altustfi vs. MW Trade SA | Altustfi vs. SOFTWARE MANSION SPOLKA | Altustfi vs. Immobile | Altustfi vs. Play2Chill SA |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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