Correlation Between MeVis Medical and Avis Budget
Can any of the company-specific risk be diversified away by investing in both MeVis Medical and Avis Budget 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 Avis Budget 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 Avis Budget Group, you can compare the effects of market volatilities on MeVis Medical and Avis Budget 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 Avis Budget. Check out your portfolio center. Please also check ongoing floating volatility patterns of MeVis Medical and Avis Budget.
Diversification Opportunities for MeVis Medical and Avis Budget
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MeVis and Avis is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MeVis Medical Solutions and Avis Budget Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avis Budget Group 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 Avis Budget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avis Budget Group has no effect on the direction of MeVis Medical i.e., MeVis Medical and Avis Budget go up and down completely randomly.
Pair Corralation between MeVis Medical and Avis Budget
Assuming the 90 days trading horizon MeVis Medical Solutions is expected to generate 0.47 times more return on investment than Avis Budget. However, MeVis Medical Solutions is 2.12 times less risky than Avis Budget. It trades about -0.02 of its potential returns per unit of risk. Avis Budget Group is currently generating about -0.1 per unit of risk. If you would invest 2,500 in MeVis Medical Solutions on July 22, 2025 and sell it today you would lose (60.00) from holding MeVis Medical Solutions or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
MeVis Medical Solutions vs. Avis Budget Group
Performance |
| Timeline |
| MeVis Medical Solutions |
| Avis Budget Group |
MeVis Medical and Avis Budget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MeVis Medical and Avis Budget
The main advantage of trading using opposite MeVis Medical and Avis Budget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MeVis Medical position performs unexpectedly, Avis Budget 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 Avis Budget will offset losses from the drop in Avis Budget's long position.| MeVis Medical vs. United Microelectronics Corp | MeVis Medical vs. Cleanaway Waste Management | MeVis Medical vs. Clean Energy Fuels | MeVis Medical vs. PKSHA TECHNOLOGY INC |
| Avis Budget vs. China Datang | Avis Budget vs. PEPTONIC MEDICAL | Avis Budget vs. CN DATANG C | Avis Budget vs. Fresenius Medical Care |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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