Correlation Between Steven Madden and Todos Medical

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

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

Diversification Opportunities for Steven Madden and Todos Medical

0.0

Correlation Coefficient

Steven Madden  Todos Medical

Pay attention - limited upside

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

Pair Corralation between Steven Madden and Todos Medical

If you would invest  4,139  in Steven Madden on September 21, 2024 and sell it today you would earn a total of  144.00  from holding Steven Madden or generate 3.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Steven Madden  vs.  Todos Medical

Steven Madden

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Steven Madden has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Todos Medical

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Steven Madden and Todos Medical

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

The idea behind Steven Madden and Todos Medical 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..