Correlation Between Mercator Medical and Astarta Holding
Can any of the company-specific risk be diversified away by investing in both Mercator Medical and Astarta Holding 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 Astarta Holding 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 Astarta Holding NV, you can compare the effects of market volatilities on Mercator Medical and Astarta Holding 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 Astarta Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercator Medical and Astarta Holding.
Diversification Opportunities for Mercator Medical and Astarta Holding
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mercator and Astarta is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mercator Medical SA and Astarta Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astarta Holding NV 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 Astarta Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astarta Holding NV has no effect on the direction of Mercator Medical i.e., Mercator Medical and Astarta Holding go up and down completely randomly.
Pair Corralation between Mercator Medical and Astarta Holding
Assuming the 90 days trading horizon Mercator Medical SA is expected to under-perform the Astarta Holding. In addition to that, Mercator Medical is 1.38 times more volatile than Astarta Holding NV. It trades about -0.09 of its total potential returns per unit of risk. Astarta Holding NV is currently generating about 0.21 per unit of volatility. If you would invest 2,885 in Astarta Holding NV on September 3, 2024 and sell it today you would earn a total of 865.00 from holding Astarta Holding NV or generate 29.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercator Medical SA vs. Astarta Holding NV
Performance |
| Timeline |
| Mercator Medical |
| Astarta Holding NV |
Mercator Medical and Astarta Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercator Medical and Astarta Holding
The main advantage of trading using opposite Mercator Medical and Astarta Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercator Medical position performs unexpectedly, Astarta Holding 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 Astarta Holding will offset losses from the drop in Astarta Holding's long position.| Mercator Medical vs. Cloud Technologies SA | Mercator Medical vs. Play2Chill SA | Mercator Medical vs. Quantum Software SA | Mercator Medical vs. Live Motion Games |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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