Correlation Between EirGenix and Medigen Vaccine

Can any of the company-specific risk be diversified away by investing in both EirGenix and Medigen Vaccine 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 EirGenix and Medigen Vaccine into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EirGenix and Medigen Vaccine Biologics, you can compare the effects of market volatilities on EirGenix and Medigen Vaccine 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 EirGenix with a short position of Medigen Vaccine. Check out your portfolio center. Please also check ongoing floating volatility patterns of EirGenix and Medigen Vaccine.

Diversification Opportunities for EirGenix and Medigen Vaccine

0.56

Correlation Coefficient

EirGenix  Medigen Vaccine

Very weak diversification

The 3 months correlation between EirGenix and Medigen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding EirGenix and Medigen Vaccine Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medigen Vaccine Biologics and EirGenix 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 EirGenix are associated (or correlated) with Medigen Vaccine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medigen Vaccine Biologics has no effect on the direction of EirGenix i.e., EirGenix and Medigen Vaccine go up and down completely randomly.

Pair Corralation between EirGenix and Medigen Vaccine

Assuming the 90 days trading horizon EirGenix is expected to generate 1.02 times more return on investment than Medigen Vaccine. However, EirGenix is 1.02 times more volatile than Medigen Vaccine Biologics. It trades about -0.05 of its potential returns per unit of risk. Medigen Vaccine Biologics is currently generating about -0.13 per unit of risk. If you would invest  10,150  in EirGenix on October 3, 2024 and sell it today you would lose (2,950) from holding EirGenix or give up 29.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

EirGenix  vs.  Medigen Vaccine Biologics

EirGenix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EirGenix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Medigen Vaccine Biologics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Medigen Vaccine Biologics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with EirGenix and Medigen Vaccine

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

The idea behind EirGenix and Medigen Vaccine Biologics 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.