Correlation Between Vivid Games and Mercator Medical
Can any of the company-specific risk be diversified away by investing in both Vivid Games 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 Vivid Games and Mercator Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivid Games SA and Mercator Medical SA, you can compare the effects of market volatilities on Vivid Games 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 Vivid Games with a short position of Mercator Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivid Games and Mercator Medical.
Diversification Opportunities for Vivid Games and Mercator Medical
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vivid and Mercator is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Vivid Games SA and Mercator Medical SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercator Medical and Vivid Games 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 Vivid Games SA 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 Vivid Games i.e., Vivid Games and Mercator Medical go up and down completely randomly.
Pair Corralation between Vivid Games and Mercator Medical
Assuming the 90 days trading horizon Vivid Games is expected to generate 1.14 times less return on investment than Mercator Medical. But when comparing it to its historical volatility, Vivid Games SA is 1.85 times less risky than Mercator Medical. It trades about 0.05 of its potential returns per unit of risk. Mercator Medical SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,755 in Mercator Medical SA on November 4, 2024 and sell it today you would earn a total of 55.00 from holding Mercator Medical SA or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivid Games SA vs. Mercator Medical SA
Performance |
| Timeline |
| Vivid Games SA |
| Mercator Medical |
Vivid Games and Mercator Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivid Games and Mercator Medical
The main advantage of trading using opposite Vivid Games and Mercator Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivid Games 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.| Vivid Games vs. CD PROJEKT SA | Vivid Games vs. PLAYWAY SA | Vivid Games vs. 11 bit studios | Vivid Games vs. TEN SQUARE GAMES |
| Mercator Medical vs. Santander Bank Polska | Mercator Medical vs. Vercom SA | Mercator Medical vs. CFI Holding SA | Mercator Medical vs. Gobarto 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.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |