Correlation Between MEDIAN TECHNOLOGIEEO-05 and Thermo Fisher

Can any of the company-specific risk be diversified away by investing in both MEDIAN TECHNOLOGIEEO-05 and Thermo Fisher 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 MEDIAN TECHNOLOGIEEO-05 and Thermo Fisher into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MEDIAN TECHNOLOGIEEO 05 and Thermo Fisher Scientific, you can compare the effects of market volatilities on MEDIAN TECHNOLOGIEEO-05 and Thermo Fisher 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 MEDIAN TECHNOLOGIEEO-05 with a short position of Thermo Fisher. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIAN TECHNOLOGIEEO-05 and Thermo Fisher.

Diversification Opportunities for MEDIAN TECHNOLOGIEEO-05 and Thermo Fisher

0.0

Correlation Coefficient

MEDIAN TECHNOLOGIEEO-05  Thermo Fisher

Pay attention - limited upside

The 3 months correlation between MEDIAN and Thermo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MEDIAN TECHNOLOGIEEO 05 and Thermo Fisher Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermo Fisher Scientific and MEDIAN TECHNOLOGIEEO-05 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 MEDIAN TECHNOLOGIEEO 05 are associated (or correlated) with Thermo Fisher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermo Fisher Scientific has no effect on the direction of MEDIAN TECHNOLOGIEEO-05 i.e., MEDIAN TECHNOLOGIEEO-05 and Thermo Fisher go up and down completely randomly.

Pair Corralation between MEDIAN TECHNOLOGIEEO-05 and Thermo Fisher

If you would invest (100.00) in MEDIAN TECHNOLOGIEEO 05 on December 21, 2024 and sell it today you would earn a total of  100.00  from holding MEDIAN TECHNOLOGIEEO 05 or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

MEDIAN TECHNOLOGIEEO 05  vs.  Thermo Fisher Scientific

MEDIAN TECHNOLOGIEEO-05

Risk-Adjusted Performance

Very Weak

Over the last 90 days MEDIAN TECHNOLOGIEEO 05 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MEDIAN TECHNOLOGIEEO-05 is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Thermo Fisher Scientific

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thermo Fisher Scientific has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Thermo Fisher is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MEDIAN TECHNOLOGIEEO-05 and Thermo Fisher

The main advantage of trading using opposite MEDIAN TECHNOLOGIEEO-05 and Thermo Fisher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIAN TECHNOLOGIEEO-05 position performs unexpectedly, Thermo Fisher 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 Thermo Fisher will offset losses from the drop in Thermo Fisher's long position.

The idea behind MEDIAN TECHNOLOGIEEO 05 and Thermo Fisher Scientific pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.