Correlation Between Mercator Medical and Atlantis
Can any of the company-specific risk be diversified away by investing in both Mercator Medical and Atlantis 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 Atlantis 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 Atlantis SA, you can compare the effects of market volatilities on Mercator Medical and Atlantis 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 Atlantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercator Medical and Atlantis.
Diversification Opportunities for Mercator Medical and Atlantis
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mercator and Atlantis is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mercator Medical SA and Atlantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantis SA 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 Atlantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantis SA has no effect on the direction of Mercator Medical i.e., Mercator Medical and Atlantis go up and down completely randomly.
Pair Corralation between Mercator Medical and Atlantis
Assuming the 90 days trading horizon Mercator Medical is expected to generate 8.0 times less return on investment than Atlantis. But when comparing it to its historical volatility, Mercator Medical SA is 1.54 times less risky than Atlantis. It trades about 0.1 of its potential returns per unit of risk. Atlantis SA is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Atlantis SA on October 25, 2024 and sell it today you would earn a total of 9.00 from holding Atlantis SA or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercator Medical SA vs. Atlantis SA
Performance |
| Timeline |
| Mercator Medical |
| Atlantis SA |
Mercator Medical and Atlantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercator Medical and Atlantis
The main advantage of trading using opposite Mercator Medical and Atlantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercator Medical position performs unexpectedly, Atlantis 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 Atlantis will offset losses from the drop in Atlantis' long position.| Mercator Medical vs. Movie Games SA | Mercator Medical vs. BNP Paribas Bank | Mercator Medical vs. Vivid Games SA | Mercator Medical vs. All In Games |
| Atlantis vs. Quantum Software SA | Atlantis vs. PZ Cormay SA | Atlantis vs. Mercator Medical SA | Atlantis vs. LSI Software 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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