Correlation Between TEN SQUARE and Mercator Medical
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE and Mercator 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 TEN SQUARE and Mercator Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and Mercator Medical SA, you can compare the effects of market volatilities on TEN SQUARE and Mercator 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 TEN SQUARE with a short position of Mercator Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Mercator Medical.
Diversification Opportunities for TEN SQUARE and Mercator Medical
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TEN and Mercator is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Mercator Medical SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercator Medical and TEN SQUARE 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 TEN SQUARE GAMES are associated (or correlated) with Mercator Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercator Medical has no effect on the direction of TEN SQUARE i.e., TEN SQUARE and Mercator Medical go up and down completely randomly.
Pair Corralation between TEN SQUARE and Mercator Medical
Assuming the 90 days trading horizon TEN SQUARE GAMES is expected to under-perform the Mercator Medical. In addition to that, TEN SQUARE is 1.04 times more volatile than Mercator Medical SA. It trades about -0.03 of its total potential returns per unit of risk. Mercator Medical SA is currently generating about 0.01 per unit of volatility. If you would invest 4,762 in Mercator Medical SA on August 30, 2024 and sell it today you would lose (27.00) from holding Mercator Medical SA or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. Mercator Medical SA
Performance |
| Timeline |
| TEN SQUARE GAMES |
| Mercator Medical |
TEN SQUARE and Mercator Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and Mercator Medical
The main advantage of trading using opposite TEN SQUARE and Mercator Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE position performs unexpectedly, Mercator 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 Mercator Medical will offset losses from the drop in Mercator Medical's long position.| TEN SQUARE vs. CD PROJEKT SA | TEN SQUARE vs. PLAYWAY SA | TEN SQUARE vs. 11 bit studios | TEN SQUARE vs. Movie Games SA |
| Mercator Medical vs. Asseco Business Solutions | Mercator Medical vs. Detalion Games SA | Mercator Medical vs. CFI Holding SA | Mercator Medical vs. HM Inwest 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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