Correlation Between Mercator Medical and Investment Friends
Can any of the company-specific risk be diversified away by investing in both Mercator Medical and Investment Friends 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 Investment Friends 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 Investment Friends Capital, you can compare the effects of market volatilities on Mercator Medical and Investment Friends 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 Investment Friends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercator Medical and Investment Friends.
Diversification Opportunities for Mercator Medical and Investment Friends
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mercator and Investment is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mercator Medical SA and Investment Friends Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Friends 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 Investment Friends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Friends has no effect on the direction of Mercator Medical i.e., Mercator Medical and Investment Friends go up and down completely randomly.
Pair Corralation between Mercator Medical and Investment Friends
If you would invest 4,900 in Mercator Medical SA on October 20, 2024 and sell it today you would earn a total of 450.00 from holding Mercator Medical SA or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Mercator Medical SA vs. Investment Friends Capital
Performance |
| Timeline |
| Mercator Medical |
| Investment Friends |
Mercator Medical and Investment Friends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercator Medical and Investment Friends
The main advantage of trading using opposite Mercator Medical and Investment Friends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercator Medical position performs unexpectedly, Investment Friends 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 Investment Friends will offset losses from the drop in Investment Friends' long position.| Mercator Medical vs. ING Bank lski | Mercator Medical vs. Quantum Software SA | Mercator Medical vs. Globe Trade Centre | Mercator Medical vs. PLAYWAY SA |
| Investment Friends vs. MCI Management SA | Investment Friends vs. Drago entertainment SA | Investment Friends vs. Gamedust SA | Investment Friends vs. Quantum 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 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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