Correlation Between Witbe Net and Mediantechn

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

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

Diversification Opportunities for Witbe Net and Mediantechn

0.15

Correlation Coefficient

Witbe Net  Mediantechn

Average diversification

The 3 months correlation between Witbe and Mediantechn is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Witbe Net SA and Mediantechn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediantechn and Witbe Net 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 Witbe Net SA are associated (or correlated) with Mediantechn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediantechn has no effect on the direction of Witbe Net i.e., Witbe Net and Mediantechn go up and down completely randomly.

Pair Corralation between Witbe Net and Mediantechn

If you would invest  343.00  in Mediantechn on October 9, 2024 and sell it today you would earn a total of  73.00  from holding Mediantechn or generate 21.28% return on investment over 90 days.

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

Witbe Net SA  vs.  Mediantechn

Witbe Net SA

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Witbe Net SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak basic indicators, Witbe Net reported solid returns over the last few months and may actually be approaching a breakup point.

Mediantechn

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mediantechn are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Mediantechn may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Witbe Net and Mediantechn

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

The idea behind Witbe Net SA and Mediantechn 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.