Correlation Between Tradegate and Advanced Medical
Can any of the company-specific risk be diversified away by investing in both Tradegate and Advanced 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 Tradegate and Advanced Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tradegate AG Wertpapierhandelsbank and Advanced Medical Solutions, you can compare the effects of market volatilities on Tradegate and Advanced 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 Tradegate with a short position of Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tradegate and Advanced Medical.
Diversification Opportunities for Tradegate and Advanced Medical
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tradegate and Advanced is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Tradegate AG Wertpapierhandels and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol and Tradegate 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 Tradegate AG Wertpapierhandelsbank are associated (or correlated) with Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of Tradegate i.e., Tradegate and Advanced Medical go up and down completely randomly.
Pair Corralation between Tradegate and Advanced Medical
Assuming the 90 days horizon Tradegate AG Wertpapierhandelsbank is expected to under-perform the Advanced Medical. But the stock apears to be less risky and, when comparing its historical volatility, Tradegate AG Wertpapierhandelsbank is 1.63 times less risky than Advanced Medical. The stock trades about -0.07 of its potential returns per unit of risk. The Advanced Medical Solutions is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 255.00 in Advanced Medical Solutions on November 3, 2024 and sell it today you would lose (9.00) from holding Advanced Medical Solutions or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tradegate AG Wertpapierhandels vs. Advanced Medical Solutions
Performance |
| Timeline |
| Tradegate AG Wertpap |
| Advanced Medical Sol |
Tradegate and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tradegate and Advanced Medical
The main advantage of trading using opposite Tradegate and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tradegate position performs unexpectedly, Advanced 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 Advanced Medical will offset losses from the drop in Advanced Medical's long position.| Tradegate vs. OPERA SOFTWARE | Tradegate vs. Arrow Electronics | Tradegate vs. Nucletron Electronic Aktiengesellschaft | Tradegate vs. GBS Software AG |
| Advanced Medical vs. MICRONIC MYDATA | Advanced Medical vs. Datadog | Advanced Medical vs. NTT DATA | Advanced Medical vs. Osisko Metals |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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