Correlation Between Mercator Medical and CI Games
Can any of the company-specific risk be diversified away by investing in both Mercator Medical and CI Games 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 CI Games 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 CI Games SA, you can compare the effects of market volatilities on Mercator Medical and CI Games 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 CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercator Medical and CI Games.
Diversification Opportunities for Mercator Medical and CI Games
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mercator and CIG is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mercator Medical SA and CI Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Games 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 CI Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Games SA has no effect on the direction of Mercator Medical i.e., Mercator Medical and CI Games go up and down completely randomly.
Pair Corralation between Mercator Medical and CI Games
Assuming the 90 days trading horizon Mercator Medical SA is expected to generate 1.62 times more return on investment than CI Games. However, Mercator Medical is 1.62 times more volatile than CI Games SA. It trades about 0.04 of its potential returns per unit of risk. CI Games SA is currently generating about -0.07 per unit of risk. If you would invest 4,265 in Mercator Medical SA on September 3, 2024 and sell it today you would earn a total of 480.00 from holding Mercator Medical SA or generate 11.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercator Medical SA vs. CI Games SA
Performance |
| Timeline |
| Mercator Medical |
| CI Games SA |
Mercator Medical and CI Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercator Medical and CI Games
The main advantage of trading using opposite Mercator Medical and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercator Medical position performs unexpectedly, CI Games 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 CI Games will offset losses from the drop in CI Games' 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 |
| CI Games vs. Medicalg | CI Games vs. Mercator Medical SA | CI Games vs. Creotech Instruments SA | CI Games vs. Echo Investment 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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