Correlation Between SpectraCure and Episurf Medical
Can any of the company-specific risk be diversified away by investing in both SpectraCure and Episurf 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 SpectraCure and Episurf Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpectraCure AB and Episurf Medical AB, you can compare the effects of market volatilities on SpectraCure and Episurf 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 SpectraCure with a short position of Episurf Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpectraCure and Episurf Medical.
Diversification Opportunities for SpectraCure and Episurf Medical
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SpectraCure and Episurf is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SpectraCure AB and Episurf Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Episurf Medical AB and SpectraCure 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 SpectraCure AB are associated (or correlated) with Episurf Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Episurf Medical AB has no effect on the direction of SpectraCure i.e., SpectraCure and Episurf Medical go up and down completely randomly.
Pair Corralation between SpectraCure and Episurf Medical
Assuming the 90 days trading horizon SpectraCure AB is expected to generate 1.44 times more return on investment than Episurf Medical. However, SpectraCure is 1.44 times more volatile than Episurf Medical AB. It trades about 0.0 of its potential returns per unit of risk. Episurf Medical AB is currently generating about -0.09 per unit of risk. If you would invest 519.00 in SpectraCure AB on November 1, 2024 and sell it today you would lose (317.00) from holding SpectraCure AB or give up 61.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SpectraCure AB vs. Episurf Medical AB
Performance |
| Timeline |
| SpectraCure AB |
| Episurf Medical AB |
SpectraCure and Episurf Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpectraCure and Episurf Medical
The main advantage of trading using opposite SpectraCure and Episurf Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpectraCure position performs unexpectedly, Episurf 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 Episurf Medical will offset losses from the drop in Episurf Medical's long position.| SpectraCure vs. Maha Energy AB | SpectraCure vs. Saniona AB | SpectraCure vs. Kancera AB | SpectraCure vs. SolTech Energy Sweden |
| Episurf Medical vs. BioInvent International AB | Episurf Medical vs. Cantargia AB | Episurf Medical vs. Bonesupport Holding AB | Episurf Medical vs. Bactiguard Holding 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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