Correlation Between Mercator Medical and Detalion Games
Can any of the company-specific risk be diversified away by investing in both Mercator Medical and Detalion 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 Detalion 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 Detalion Games SA, you can compare the effects of market volatilities on Mercator Medical and Detalion 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 Detalion Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercator Medical and Detalion Games.
Diversification Opportunities for Mercator Medical and Detalion Games
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mercator and Detalion is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mercator Medical SA and Detalion Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Detalion 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 Detalion Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Detalion Games SA has no effect on the direction of Mercator Medical i.e., Mercator Medical and Detalion Games go up and down completely randomly.
Pair Corralation between Mercator Medical and Detalion Games
Assuming the 90 days trading horizon Mercator Medical SA is expected to generate 0.62 times more return on investment than Detalion Games. However, Mercator Medical SA is 1.61 times less risky than Detalion Games. It trades about 0.01 of its potential returns per unit of risk. Detalion Games SA is currently generating about -0.05 per unit of risk. If you would invest 4,750 in Mercator Medical SA on September 3, 2024 and sell it today you would lose (5.00) from holding Mercator Medical SA or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.84% |
| Values | Daily Returns |
Mercator Medical SA vs. Detalion Games SA
Performance |
| Timeline |
| Mercator Medical |
| Detalion Games SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mercator Medical and Detalion Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercator Medical and Detalion Games
The main advantage of trading using opposite Mercator Medical and Detalion Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercator Medical position performs unexpectedly, Detalion 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 Detalion Games will offset losses from the drop in Detalion 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 |
| Detalion Games vs. Inter Cars SA | Detalion Games vs. Live Motion Games | Detalion Games vs. Intersport Polska SA | Detalion Games vs. PZ Cormay 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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