Correlation Between Mercator Medical and Centrum Finansowe
Can any of the company-specific risk be diversified away by investing in both Mercator Medical and Centrum Finansowe 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 Centrum Finansowe 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 Centrum Finansowe Banku, you can compare the effects of market volatilities on Mercator Medical and Centrum Finansowe 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 Centrum Finansowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercator Medical and Centrum Finansowe.
Diversification Opportunities for Mercator Medical and Centrum Finansowe
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mercator and Centrum is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mercator Medical SA and Centrum Finansowe Banku in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrum Finansowe Banku 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 Centrum Finansowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrum Finansowe Banku has no effect on the direction of Mercator Medical i.e., Mercator Medical and Centrum Finansowe go up and down completely randomly.
Pair Corralation between Mercator Medical and Centrum Finansowe
Assuming the 90 days trading horizon Mercator Medical SA is expected to under-perform the Centrum Finansowe. In addition to that, Mercator Medical is 1.22 times more volatile than Centrum Finansowe Banku. It trades about -0.08 of its total potential returns per unit of risk. Centrum Finansowe Banku is currently generating about -0.05 per unit of volatility. If you would invest 580.00 in Centrum Finansowe Banku on September 15, 2024 and sell it today you would lose (15.00) from holding Centrum Finansowe Banku or give up 2.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercator Medical SA vs. Centrum Finansowe Banku
Performance |
| Timeline |
| Mercator Medical |
| Centrum Finansowe Banku |
Mercator Medical and Centrum Finansowe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercator Medical and Centrum Finansowe
The main advantage of trading using opposite Mercator Medical and Centrum Finansowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercator Medical position performs unexpectedly, Centrum Finansowe 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 Centrum Finansowe will offset losses from the drop in Centrum Finansowe's long position.| Mercator Medical vs. Quantum Software SA | Mercator Medical vs. BNP Paribas Bank | Mercator Medical vs. UniCredit SpA | Mercator Medical vs. PLAYWAY SA |
| Centrum Finansowe vs. Mercator Medical SA | Centrum Finansowe vs. Kool2play SA | Centrum Finansowe vs. MW Trade SA | Centrum Finansowe vs. Santander Bank Polska |
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.
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