Correlation Between 111 and Medavail Holdings

Can any of the company-specific risk be diversified away by investing in both 111 and Medavail Holdings 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 111 and Medavail Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 111 Inc and Medavail Holdings, you can compare the effects of market volatilities on 111 and Medavail Holdings 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 111 with a short position of Medavail Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 111 and Medavail Holdings.

Diversification Opportunities for 111 and Medavail Holdings

0.0

Correlation Coefficient

111  Medavail Holdings

Pay attention - limited upside

The 3 months correlation between 111 and Medavail is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 111 Inc and Medavail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medavail Holdings and 111 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 111 Inc are associated (or correlated) with Medavail Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medavail Holdings has no effect on the direction of 111 i.e., 111 and Medavail Holdings go up and down completely randomly.

Pair Corralation between 111 and Medavail Holdings

If you would invest  735.00  in 111 Inc on December 27, 2024 and sell it today you would earn a total of  257.00  from holding 111 Inc or generate 34.97% return on investment over 90 days.

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

111 Inc  vs.  Medavail Holdings

111 Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 111 Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, 111 demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Medavail Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Medavail Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Medavail Holdings is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with 111 and Medavail Holdings

The main advantage of trading using opposite 111 and Medavail Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 111 position performs unexpectedly, Medavail Holdings 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 Medavail Holdings will offset losses from the drop in Medavail Holdings' long position.

The idea behind 111 Inc and Medavail Holdings 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.