Correlation Between Medigus and Modular Medical
Can any of the company-specific risk be diversified away by investing in both Medigus and Modular 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 Medigus and Modular Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medigus Ltd ADR and Modular Medical, you can compare the effects of market volatilities on Medigus and Modular 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 Medigus with a short position of Modular Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medigus and Modular Medical.
Diversification Opportunities for Medigus and Modular Medical
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Medigus and Modular is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Medigus Ltd ADR and Modular Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modular Medical and Medigus 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 Medigus Ltd ADR are associated (or correlated) with Modular Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modular Medical has no effect on the direction of Medigus i.e., Medigus and Modular Medical go up and down completely randomly.
Pair Corralation between Medigus and Modular Medical
Given the investment horizon of 90 days Medigus Ltd ADR is expected to under-perform the Modular Medical. In addition to that, Medigus is 1.22 times more volatile than Modular Medical. It trades about -0.2 of its total potential returns per unit of risk. Modular Medical is currently generating about -0.14 per unit of volatility. If you would invest 181.00 in Modular Medical on January 30, 2024 and sell it today you would lose (23.00) from holding Modular Medical or give up 12.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 66.67% |
Values | Daily Returns |
Medigus Ltd ADR vs. Modular Medical
Performance |
Timeline |
Medigus Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Modular Medical |
Medigus and Modular Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Medigus and Modular Medical
The main advantage of trading using opposite Medigus and Modular Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medigus position performs unexpectedly, Modular 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 Modular Medical will offset losses from the drop in Modular Medical's long position.Medigus vs. Brainsway | Medigus vs. Delcath Systems | Medigus vs. Paragon 28 | Medigus vs. Nexalin Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |