Correlation Between Speed Medical and Export Development
Can any of the company-specific risk be diversified away by investing in both Speed Medical and Export Development 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 Speed Medical and Export Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Speed Medical and Export Development Bank, you can compare the effects of market volatilities on Speed Medical and Export Development 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 Speed Medical with a short position of Export Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Speed Medical and Export Development.
Diversification Opportunities for Speed Medical and Export Development
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Speed and Export is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Speed Medical and Export Development Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Export Development Bank and Speed 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 Speed Medical are associated (or correlated) with Export Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Export Development Bank has no effect on the direction of Speed Medical i.e., Speed Medical and Export Development go up and down completely randomly.
Pair Corralation between Speed Medical and Export Development
Assuming the 90 days trading horizon Speed Medical is expected to generate 1.15 times more return on investment than Export Development. However, Speed Medical is 1.15 times more volatile than Export Development Bank. It trades about 0.01 of its potential returns per unit of risk. Export Development Bank is currently generating about -0.09 per unit of risk. If you would invest 37.00 in Speed Medical on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Speed Medical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Speed Medical vs. Export Development Bank
Performance |
| Timeline |
| Speed Medical |
| Export Development Bank |
Speed Medical and Export Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Speed Medical and Export Development
The main advantage of trading using opposite Speed Medical and Export Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Speed Medical position performs unexpectedly, Export Development 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 Export Development will offset losses from the drop in Export Development's long position.| Speed Medical vs. Memphis Pharmaceuticals | Speed Medical vs. Paint Chemicals Industries | Speed Medical vs. Egyptians For Investment | Speed Medical vs. Global Telecom Holding |
| Export Development vs. Memphis Pharmaceuticals | Export Development vs. Paint Chemicals Industries | Export Development vs. Egyptians For Investment | Export Development vs. Global Telecom Holding |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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