Correlation Between Episurf Medical and SaveLend Group

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

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

Diversification Opportunities for Episurf Medical and SaveLend Group

0.48

Correlation Coefficient

Episurf Medical  SaveLend Group

Very weak diversification

The 3 months correlation between Episurf and SaveLend is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and SaveLend Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaveLend Group AB and Episurf Medical 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 Episurf Medical AB are associated (or correlated) with SaveLend Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaveLend Group AB has no effect on the direction of Episurf Medical i.e., Episurf Medical and SaveLend Group go up and down completely randomly.

Pair Corralation between Episurf Medical and SaveLend Group

Assuming the 90 days trading horizon Episurf Medical AB is expected to generate 3.69 times more return on investment than SaveLend Group. However, Episurf Medical is 3.69 times more volatile than SaveLend Group AB. It trades about 0.03 of its potential returns per unit of risk. SaveLend Group AB is currently generating about -0.13 per unit of risk. If you would invest  13.00  in Episurf Medical AB on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Episurf Medical AB or generate 0.0% return on investment over 90 days.

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

Episurf Medical AB  vs.  SaveLend Group AB

Episurf Medical AB

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Episurf Medical AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Episurf Medical sustained solid returns over the last few months and may actually be approaching a breakup point.

SaveLend Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SaveLend Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Episurf Medical and SaveLend Group

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

The idea behind Episurf Medical AB and SaveLend Group 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..