Correlation Between MiMedx and United States
Can any of the company-specific risk be diversified away by investing in both MiMedx and United States 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 MiMedx and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MiMedx Group and United States 12, you can compare the effects of market volatilities on MiMedx and United States 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 MiMedx with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of MiMedx and United States.
Diversification Opportunities for MiMedx and United States
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MiMedx and United is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding MiMedx Group and United States 12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States 12 and MiMedx 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 MiMedx Group are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States 12 has no effect on the direction of MiMedx i.e., MiMedx and United States go up and down completely randomly.
Pair Corralation between MiMedx and United States
Given the investment horizon of 90 days MiMedx Group is expected to under-perform the United States. In addition to that, MiMedx is 3.22 times more volatile than United States 12. It trades about -0.3 of its total potential returns per unit of risk. United States 12 is currently generating about 0.13 per unit of volatility. If you would invest 3,958 in United States 12 on January 25, 2024 and sell it today you would earn a total of 92.00 from holding United States 12 or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MiMedx Group vs. United States 12
Performance |
| Timeline |
| MiMedx Group |
| United States 12 |
MiMedx and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MiMedx and United States
The main advantage of trading using opposite MiMedx and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MiMedx position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| MiMedx vs. CytomX Therapeutics | MiMedx vs. Assembly Biosciences | MiMedx vs. Achilles Therapeutics PLC | MiMedx vs. Instil Bio |
| United States vs. HUMANA INC | United States vs. Aquagold International | United States vs. Barloworld Ltd ADR | United States vs. Morningstar Unconstrained Allocation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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