Correlation Between OSE Pharma and Medincell
Can any of the company-specific risk be diversified away by investing in both OSE Pharma and Medincell 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 OSE Pharma and Medincell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSE Pharma SA and Medincell SA, you can compare the effects of market volatilities on OSE Pharma and Medincell 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 OSE Pharma with a short position of Medincell. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSE Pharma and Medincell.
Diversification Opportunities for OSE Pharma and Medincell
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between OSE and Medincell is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding OSE Pharma SA and Medincell SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medincell SA and OSE Pharma 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 OSE Pharma SA are associated (or correlated) with Medincell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medincell SA has no effect on the direction of OSE Pharma i.e., OSE Pharma and Medincell go up and down completely randomly.
Pair Corralation between OSE Pharma and Medincell
Assuming the 90 days trading horizon OSE Pharma SA is expected to under-perform the Medincell. But the stock apears to be less risky and, when comparing its historical volatility, OSE Pharma SA is 1.04 times less risky than Medincell. The stock trades about -0.22 of its potential returns per unit of risk. The Medincell SA is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,498 in Medincell SA on September 1, 2024 and sell it today you would earn a total of 314.00 from holding Medincell SA or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OSE Pharma SA vs. Medincell SA
Performance |
| Timeline |
| OSE Pharma SA |
| Medincell SA |
OSE Pharma and Medincell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSE Pharma and Medincell
The main advantage of trading using opposite OSE Pharma and Medincell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSE Pharma position performs unexpectedly, Medincell 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 Medincell will offset losses from the drop in Medincell's long position.| OSE Pharma vs. Innate Pharma | OSE Pharma vs. Quantum Genomics SA | OSE Pharma vs. Valneva SE | OSE Pharma vs. Poxel SA |
| Medincell vs. Innate Pharma | Medincell vs. Nanobiotix SA | Medincell vs. Genfit | Medincell vs. AB Science 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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