Correlation Between Ramsay Générale and Medicover

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

By analyzing existing cross correlation between Ramsay Gnrale de and Medicover AB, you can compare the effects of market volatilities on Ramsay Générale and Medicover 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 Ramsay Générale with a short position of Medicover. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Générale and Medicover.

Diversification Opportunities for Ramsay Générale and Medicover

-0.65

Correlation Coefficient

Ramsay Générale  Medicover

Excellent diversification

The 3 months correlation between Ramsay and Medicover is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Gnrale de and Medicover AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicover AB and Ramsay Générale 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 Ramsay Gnrale de are associated (or correlated) with Medicover. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicover AB has no effect on the direction of Ramsay Générale i.e., Ramsay Générale and Medicover go up and down completely randomly.

Pair Corralation between Ramsay Générale and Medicover

Assuming the 90 days horizon Ramsay Gnrale de is expected to under-perform the Medicover. In addition to that, Ramsay Générale is 1.22 times more volatile than Medicover AB. It trades about -0.15 of its total potential returns per unit of risk. Medicover AB is currently generating about 0.21 per unit of volatility. If you would invest  1,514  in Medicover AB on November 29, 2024 and sell it today you would earn a total of  344.00  from holding Medicover AB or generate 22.72% return on investment over 90 days.

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

Ramsay Gnrale de  vs.  Medicover AB

Ramsay Gnrale de

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ramsay Gnrale de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Medicover AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Medicover AB are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Medicover reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ramsay Générale and Medicover

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

The idea behind Ramsay Gnrale de and Medicover 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.

Check out your portfolio center.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.