Correlation Between CD PROJEKT and Mercator Medical

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

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

Diversification Opportunities for CD PROJEKT and Mercator Medical

0.0

Correlation Coefficient

CD PROJEKT  Mercator Medical

Pay attention - limited upside

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

Pair Corralation between CD PROJEKT and Mercator Medical

If you would invest  4,340  in Mercator Medical SA on April 24, 2025 and sell it today you would earn a total of  290.00  from holding Mercator Medical SA or generate 6.68% return on investment over 90 days.

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

CD PROJEKT SA  vs.  Mercator Medical SA

CD PROJEKT SA

Risk-Adjusted Performance

OK

Over the last 90 days CD PROJEKT SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, CD PROJEKT is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Mercator Medical

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mercator Medical SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Mercator Medical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CD PROJEKT and Mercator Medical

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

The idea behind CD PROJEKT SA and Mercator Medical SA 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.