Correlation Between Mercator Medical and True Games
Can any of the company-specific risk be diversified away by investing in both Mercator Medical and True 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 True 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 True Games Syndicate, you can compare the effects of market volatilities on Mercator Medical and True 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 True Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercator Medical and True Games.
Diversification Opportunities for Mercator Medical and True Games
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mercator and True is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mercator Medical SA and True Games Syndicate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on True Games Syndicate 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 True Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of True Games Syndicate has no effect on the direction of Mercator Medical i.e., Mercator Medical and True Games go up and down completely randomly.
Pair Corralation between Mercator Medical and True Games
Assuming the 90 days trading horizon Mercator Medical is expected to generate 4.15 times less return on investment than True Games. In addition to that, Mercator Medical is 1.08 times more volatile than True Games Syndicate. It trades about 0.03 of its total potential returns per unit of risk. True Games Syndicate is currently generating about 0.12 per unit of volatility. If you would invest 43.00 in True Games Syndicate on November 3, 2024 and sell it today you would earn a total of 2.00 from holding True Games Syndicate or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
Mercator Medical SA vs. True Games Syndicate
Performance |
| Timeline |
| Mercator Medical |
| True Games Syndicate |
Mercator Medical and True Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercator Medical and True Games
The main advantage of trading using opposite Mercator Medical and True Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercator Medical position performs unexpectedly, True 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 True Games will offset losses from the drop in True Games' long position.| Mercator Medical vs. Creotech Instruments SA | Mercator Medical vs. New Tech Venture | Mercator Medical vs. Quantum Software SA | Mercator Medical vs. ING Bank lski |
| True Games vs. Clean Carbon Energy | True Games vs. ADX | True Games vs. Agroliga Group PLC | True Games vs. Vee 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |