Correlation Between New Tech and Mercator Medical
Can any of the company-specific risk be diversified away by investing in both New Tech and Mercator Medical 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 New Tech and Mercator Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Tech Venture and Mercator Medical SA, you can compare the effects of market volatilities on New Tech and Mercator 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 New Tech with a short position of Mercator Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Tech and Mercator Medical.
Diversification Opportunities for New Tech and Mercator Medical
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and Mercator is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding New Tech Venture and Mercator Medical SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercator Medical and New Tech 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 New Tech Venture are associated (or correlated) with Mercator Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercator Medical has no effect on the direction of New Tech i.e., New Tech and Mercator Medical go up and down completely randomly.
Pair Corralation between New Tech and Mercator Medical
If you would invest 4,770 in Mercator Medical SA on November 3, 2024 and sell it today you would earn a total of 40.00 from holding Mercator Medical SA or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
New Tech Venture vs. Mercator Medical SA
Performance |
| Timeline |
| New Tech Venture |
| Mercator Medical |
New Tech and Mercator Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Tech and Mercator Medical
The main advantage of trading using opposite New Tech and Mercator Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Tech position performs unexpectedly, Mercator 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 Mercator Medical will offset losses from the drop in Mercator Medical's long position.| New Tech vs. Asseco Business Solutions | New Tech vs. Detalion Games SA | New Tech vs. Movie Games SA | New Tech vs. Altustfi |
| Mercator Medical vs. Creotech Instruments SA | Mercator Medical vs. New Tech Venture | Mercator Medical vs. Quantum Software SA | Mercator Medical vs. ING Bank lski |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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