Correlation Between Mercator Medical and Logintrade
Can any of the company-specific risk be diversified away by investing in both Mercator Medical and Logintrade 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 Logintrade 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 Logintrade SA, you can compare the effects of market volatilities on Mercator Medical and Logintrade 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 Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercator Medical and Logintrade.
Diversification Opportunities for Mercator Medical and Logintrade
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mercator and Logintrade is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mercator Medical SA and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade 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 Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of Mercator Medical i.e., Mercator Medical and Logintrade go up and down completely randomly.
Pair Corralation between Mercator Medical and Logintrade
Assuming the 90 days trading horizon Mercator Medical SA is expected to generate 0.57 times more return on investment than Logintrade. However, Mercator Medical SA is 1.75 times less risky than Logintrade. It trades about 0.1 of its potential returns per unit of risk. Logintrade SA is currently generating about 0.05 per unit of risk. If you would invest 4,840 in Mercator Medical SA on October 25, 2024 and sell it today you would earn a total of 260.00 from holding Mercator Medical SA or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 62.5% |
| Values | Daily Returns |
Mercator Medical SA vs. Logintrade SA
Performance |
| Timeline |
| Mercator Medical |
| Logintrade SA |
Mercator Medical and Logintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercator Medical and Logintrade
The main advantage of trading using opposite Mercator Medical and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercator Medical position performs unexpectedly, Logintrade 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 Logintrade will offset losses from the drop in Logintrade's 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 |
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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 Stocks Directory module to find actively traded stocks across global markets.
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