Correlation Between MEDTECH GLOBAL and SECURITAS

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

By analyzing existing cross correlation between MEDTECH GLOBAL and SECURITAS B , you can compare the effects of market volatilities on MEDTECH GLOBAL and SECURITAS 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 SECURITAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDTECH GLOBAL and SECURITAS.

Diversification Opportunities for MEDTECH GLOBAL and SECURITAS

0.0

Correlation Coefficient

MEDTECH GLOBAL  SECURITAS

Pay attention - limited upside

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

Pair Corralation between MEDTECH GLOBAL and SECURITAS

If you would invest  929.00  in SECURITAS B on October 4, 2024 and sell it today you would earn a total of  274.00  from holding SECURITAS B or generate 29.49% return on investment over 90 days.

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

MEDTECH GLOBAL  vs.  SECURITAS B

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 latest stock price disarray, may contribute to short-term losses for the investors.

SECURITAS B

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SECURITAS B are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, SECURITAS unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MEDTECH GLOBAL and SECURITAS

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

The idea behind MEDTECH GLOBAL and SECURITAS B 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.