Correlation Between Saule Technologies and Medicalg
Can any of the company-specific risk be diversified away by investing in both Saule Technologies and Medicalg 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 Saule Technologies and Medicalg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saule Technologies SA and Medicalg, you can compare the effects of market volatilities on Saule Technologies and Medicalg 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 Saule Technologies with a short position of Medicalg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and Medicalg.
Diversification Opportunities for Saule Technologies and Medicalg
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saule and Medicalg is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and Medicalg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicalg and Saule Technologies 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 Saule Technologies SA are associated (or correlated) with Medicalg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicalg has no effect on the direction of Saule Technologies i.e., Saule Technologies and Medicalg go up and down completely randomly.
Pair Corralation between Saule Technologies and Medicalg
Assuming the 90 days trading horizon Saule Technologies SA is expected to generate 1.29 times more return on investment than Medicalg. However, Saule Technologies is 1.29 times more volatile than Medicalg. It trades about 0.21 of its potential returns per unit of risk. Medicalg is currently generating about 0.14 per unit of risk. If you would invest 118.00 in Saule Technologies SA on December 2, 2024 and sell it today you would earn a total of 95.00 from holding Saule Technologies SA or generate 80.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.33% |
Values | Daily Returns |
Saule Technologies SA vs. Medicalg
Performance |
Timeline |
Saule Technologies |
Medicalg |
Saule Technologies and Medicalg Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saule Technologies and Medicalg
The main advantage of trading using opposite Saule Technologies and Medicalg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies position performs unexpectedly, Medicalg 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 Medicalg will offset losses from the drop in Medicalg's long position.Saule Technologies vs. LSI Software SA | Saule Technologies vs. Alior Bank SA | Saule Technologies vs. ING Bank lski | Saule Technologies vs. Mercator Medical SA |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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