Correlation Between SaveLend Group and Episurf Medical

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

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

Diversification Opportunities for SaveLend Group and Episurf Medical

0.35

Correlation Coefficient

SaveLend Group  Episurf Medical

Weak diversification

The 3 months correlation between SaveLend and Episurf is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SaveLend Group AB and Episurf Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Episurf Medical AB and SaveLend Group 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 SaveLend Group AB are associated (or correlated) with Episurf Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Episurf Medical AB has no effect on the direction of SaveLend Group i.e., SaveLend Group and Episurf Medical go up and down completely randomly.

Pair Corralation between SaveLend Group and Episurf Medical

Assuming the 90 days trading horizon SaveLend Group AB is expected to under-perform the Episurf Medical. But the stock apears to be less risky and, when comparing its historical volatility, SaveLend Group AB is 1.8 times less risky than Episurf Medical. The stock trades about -0.19 of its potential returns per unit of risk. The Episurf Medical AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Episurf Medical AB on December 24, 2024 and sell it today you would earn a total of  2.00  from holding Episurf Medical AB or generate 18.18% return on investment over 90 days.

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

SaveLend Group AB  vs.  Episurf Medical AB

SaveLend Group AB

Risk-Adjusted Performance

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 uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Episurf Medical AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Episurf Medical AB are ranked lower than 5 (%) 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.

Pair Trading with SaveLend Group and Episurf Medical

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

The idea behind SaveLend Group AB and Episurf Medical 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.