Correlation Between MeVis Medical and TRIPCOM GROUP

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

By analyzing existing cross correlation between MeVis Medical Solutions and TRIPCOM GROUP DL 00125, you can compare the effects of market volatilities on MeVis Medical and TRIPCOM GROUP 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 MeVis Medical with a short position of TRIPCOM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and TRIPCOM GROUP.

Diversification Opportunities for MeVis Medical and TRIPCOM GROUP

0.63

Correlation Coefficient

MeVis Medical  TRIPCOM GROUP

Poor diversification

The 3 months correlation between MeVis and TRIPCOM is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and TRIPCOM GROUP DL 00125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRIPCOM GROUP DL and MeVis Medical 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 MeVis Medical Solutions are associated (or correlated) with TRIPCOM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRIPCOM GROUP DL has no effect on the direction of MeVis Medical i.e., MeVis Medical and TRIPCOM GROUP go up and down completely randomly.

Pair Corralation between MeVis Medical and TRIPCOM GROUP

Assuming the 90 days trading horizon MeVis Medical Solutions is expected to under-perform the TRIPCOM GROUP. But the stock apears to be less risky and, when comparing its historical volatility, MeVis Medical Solutions is 3.48 times less risky than TRIPCOM GROUP. The stock trades about -0.05 of its potential returns per unit of risk. The TRIPCOM GROUP DL 00125 is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  5,600  in TRIPCOM GROUP DL 00125 on May 16, 2025 and sell it today you would lose (246.00) from holding TRIPCOM GROUP DL 00125 or give up 4.39% of portfolio value over 90 days.

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

MeVis Medical Solutions  vs.  TRIPCOM GROUP DL 00125

MeVis Medical Solutions

Risk-Adjusted Performance

Weakest

Over the last 90 days MeVis Medical Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, MeVis Medical is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

TRIPCOM GROUP DL

Risk-Adjusted Performance

Weakest

Over the last 90 days TRIPCOM GROUP DL 00125 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TRIPCOM GROUP is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MeVis Medical and TRIPCOM GROUP

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

The idea behind MeVis Medical Solutions and TRIPCOM GROUP DL 00125 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.

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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.