Correlation Between MEDTECH GLOBAL and STILLFRONT GRP

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

By analyzing existing cross correlation between MEDTECH GLOBAL and STILLFRONT GRP AB, you can compare the effects of market volatilities on MEDTECH GLOBAL and STILLFRONT GRP 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 MEDTECH GLOBAL with a short position of STILLFRONT GRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDTECH GLOBAL and STILLFRONT GRP.

Diversification Opportunities for MEDTECH GLOBAL and STILLFRONT GRP

0.0

Correlation Coefficient

MEDTECH GLOBAL  STILLFRONT GRP

Pay attention - limited upside

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

Pair Corralation between MEDTECH GLOBAL and STILLFRONT GRP

If you would invest  64.00  in STILLFRONT GRP AB on October 24, 2024 and sell it today you would lose (1.00) from holding STILLFRONT GRP AB or give up 1.56% of portfolio value over 90 days.

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

MEDTECH GLOBAL  vs.  STILLFRONT GRP AB

MEDTECH GLOBAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MEDTECH GLOBAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, MEDTECH GLOBAL is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

STILLFRONT GRP AB

Risk-Adjusted Performance

0 of 100

Modest

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

Pair Trading with MEDTECH GLOBAL and STILLFRONT GRP

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

The idea behind MEDTECH GLOBAL and STILLFRONT GRP AB 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.