Correlation Between NYSE Composite and Medigene
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Medigene 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 NYSE Composite and Medigene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Medigene AG, you can compare the effects of market volatilities on NYSE Composite and Medigene 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 NYSE Composite with a short position of Medigene. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Medigene.
Diversification Opportunities for NYSE Composite and Medigene
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Medigene is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Medigene AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medigene AG and NYSE Composite 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 NYSE Composite are associated (or correlated) with Medigene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medigene AG has no effect on the direction of NYSE Composite i.e., NYSE Composite and Medigene go up and down completely randomly.
Pair Corralation between NYSE Composite and Medigene
Assuming the 90 days trading horizon NYSE Composite is expected to generate 8.91 times less return on investment than Medigene. But when comparing it to its historical volatility, NYSE Composite is 14.13 times less risky than Medigene. It trades about 0.11 of its potential returns per unit of risk. Medigene AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 151.00 in Medigene AG on September 12, 2024 and sell it today you would earn a total of 108.00 from holding Medigene AG or generate 71.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 70.97% |
| Values | Daily Returns |
NYSE Composite vs. Medigene AG
Performance |
| Timeline |
NYSE Composite and Medigene Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Medigene AG
Pair trading matchups for Medigene
Pair Trading with NYSE Composite and Medigene
The main advantage of trading using opposite NYSE Composite and Medigene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Medigene 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 Medigene will offset losses from the drop in Medigene's long position.| NYSE Composite vs. Boston Beer | NYSE Composite vs. Freedom Bank of | NYSE Composite vs. KeyCorp | NYSE Composite vs. LithiumBank Resources Corp |
| Medigene vs. Northwest Biotherapeutics | Medigene vs. Geron | Medigene vs. Advanced Proteome Therapeutics | Medigene vs. Oxford BioDynamics 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |