Correlation Between Sedana Medical and Isofol Medical
Can any of the company-specific risk be diversified away by investing in both Sedana Medical and Isofol 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 Sedana Medical and Isofol Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sedana Medical AB and Isofol Medical AB, you can compare the effects of market volatilities on Sedana Medical and Isofol 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 Sedana Medical with a short position of Isofol Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sedana Medical and Isofol Medical.
Diversification Opportunities for Sedana Medical and Isofol Medical
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sedana and Isofol is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sedana Medical AB and Isofol Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isofol Medical AB and Sedana 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 Sedana Medical AB are associated (or correlated) with Isofol Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isofol Medical AB has no effect on the direction of Sedana Medical i.e., Sedana Medical and Isofol Medical go up and down completely randomly.
Pair Corralation between Sedana Medical and Isofol Medical
Assuming the 90 days trading horizon Sedana Medical is expected to generate 208.77 times less return on investment than Isofol Medical. But when comparing it to its historical volatility, Sedana Medical AB is 1.73 times less risky than Isofol Medical. It trades about 0.0 of its potential returns per unit of risk. Isofol Medical AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 76.00 in Isofol Medical AB on September 3, 2024 and sell it today you would earn a total of 223.00 from holding Isofol Medical AB or generate 293.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sedana Medical AB vs. Isofol Medical AB
Performance |
| Timeline |
| Sedana Medical AB |
| Isofol Medical AB |
Sedana Medical and Isofol Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sedana Medical and Isofol Medical
The main advantage of trading using opposite Sedana Medical and Isofol Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sedana Medical position performs unexpectedly, Isofol 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 Isofol Medical will offset losses from the drop in Isofol Medical's long position.| Sedana Medical vs. Getinge AB ser | Sedana Medical vs. Elekta AB | Sedana Medical vs. AddLife AB | Sedana Medical vs. Biotage AB |
| Isofol Medical vs. Simris Alg AB | Isofol Medical vs. Immunovia publ AB | Isofol Medical vs. Sedana Medical AB | Isofol Medical vs. KABE Group AB |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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