Correlation Between SECURE ELECTRONIC and INDUSTRIAL MEDICAL
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By analyzing existing cross correlation between SECURE ELECTRONIC TECHNOLOGY and INDUSTRIAL MEDICAL GASES, you can compare the effects of market volatilities on SECURE ELECTRONIC and INDUSTRIAL MEDICAL 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 SECURE ELECTRONIC with a short position of INDUSTRIAL MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECURE ELECTRONIC and INDUSTRIAL MEDICAL.
Diversification Opportunities for SECURE ELECTRONIC and INDUSTRIAL MEDICAL
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SECURE and INDUSTRIAL is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding SECURE ELECTRONIC TECHNOLOGY and INDUSTRIAL MEDICAL GASES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDUSTRIAL MEDICAL GASES and SECURE ELECTRONIC 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 SECURE ELECTRONIC TECHNOLOGY are associated (or correlated) with INDUSTRIAL MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDUSTRIAL MEDICAL GASES has no effect on the direction of SECURE ELECTRONIC i.e., SECURE ELECTRONIC and INDUSTRIAL MEDICAL go up and down completely randomly.
Pair Corralation between SECURE ELECTRONIC and INDUSTRIAL MEDICAL
Assuming the 90 days trading horizon SECURE ELECTRONIC TECHNOLOGY is expected to generate 2.18 times more return on investment than INDUSTRIAL MEDICAL. However, SECURE ELECTRONIC is 2.18 times more volatile than INDUSTRIAL MEDICAL GASES. It trades about 0.08 of its potential returns per unit of risk. INDUSTRIAL MEDICAL GASES is currently generating about 0.16 per unit of risk. If you would invest 24.00 in SECURE ELECTRONIC TECHNOLOGY on October 25, 2024 and sell it today you would earn a total of 56.00 from holding SECURE ELECTRONIC TECHNOLOGY or generate 233.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.6% |
| Values | Daily Returns |
SECURE ELECTRONIC TECHNOLOGY vs. INDUSTRIAL MEDICAL GASES
Performance |
| Timeline |
| SECURE ELECTRONIC |
| INDUSTRIAL MEDICAL GASES |
SECURE ELECTRONIC and INDUSTRIAL MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECURE ELECTRONIC and INDUSTRIAL MEDICAL
The main advantage of trading using opposite SECURE ELECTRONIC and INDUSTRIAL MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECURE ELECTRONIC position performs unexpectedly, INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL will offset losses from the drop in INDUSTRIAL MEDICAL's long position.| SECURE ELECTRONIC vs. ABC TRANSPORT PLC | SECURE ELECTRONIC vs. INTERNATIONAL BREWERIES PLC | SECURE ELECTRONIC vs. JAIZ BANK PLC | SECURE ELECTRONIC vs. NEM INSURANCE PLC |
| INDUSTRIAL MEDICAL vs. AFRICAN ALLIANCE INSURANCE | INDUSTRIAL MEDICAL vs. NEM INSURANCE PLC | INDUSTRIAL MEDICAL vs. LIVINGTRUST MORTGAGE BANK | INDUSTRIAL MEDICAL vs. UNITY BANK PLC |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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