Correlation Between Cogent Communications and MeVis Medical
Can any of the company-specific risk be diversified away by investing in both Cogent Communications and MeVis 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 Cogent Communications and MeVis Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Communications Holdings and MeVis Medical Solutions, you can compare the effects of market volatilities on Cogent Communications and MeVis 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 Cogent Communications with a short position of MeVis Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and MeVis Medical.
Diversification Opportunities for Cogent Communications and MeVis Medical
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cogent and MeVis is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Holdings and MeVis Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeVis Medical Solutions and Cogent Communications 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 Cogent Communications Holdings are associated (or correlated) with MeVis Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeVis Medical Solutions has no effect on the direction of Cogent Communications i.e., Cogent Communications and MeVis Medical go up and down completely randomly.
Pair Corralation between Cogent Communications and MeVis Medical
Assuming the 90 days trading horizon Cogent Communications Holdings is expected to under-perform the MeVis Medical. In addition to that, Cogent Communications is 3.03 times more volatile than MeVis Medical Solutions. It trades about -0.05 of its total potential returns per unit of risk. MeVis Medical Solutions is currently generating about -0.04 per unit of volatility. If you would invest 2,560 in MeVis Medical Solutions on April 24, 2025 and sell it today you would lose (60.00) from holding MeVis Medical Solutions or give up 2.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cogent Communications Holdings vs. MeVis Medical Solutions
Performance |
Timeline |
Cogent Communications |
MeVis Medical Solutions |
Cogent Communications and MeVis Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cogent Communications and MeVis Medical
The main advantage of trading using opposite Cogent Communications and MeVis Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications position performs unexpectedly, MeVis 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 MeVis Medical will offset losses from the drop in MeVis Medical's long position.Cogent Communications vs. Transportadora de Gas | Cogent Communications vs. BII Railway Transportation | Cogent Communications vs. Liberty Broadband | Cogent Communications vs. KENEDIX OFFICE INV |
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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.
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