Correlation Between Stic Investments and Cytogen
Can any of the company-specific risk be diversified away by investing in both Stic Investments and Cytogen 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 Stic Investments and Cytogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and Cytogen, you can compare the effects of market volatilities on Stic Investments and Cytogen 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 Stic Investments with a short position of Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and Cytogen.
Diversification Opportunities for Stic Investments and Cytogen
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stic and Cytogen is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen and Stic Investments 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 Stic Investments are associated (or correlated) with Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Stic Investments i.e., Stic Investments and Cytogen go up and down completely randomly.
Pair Corralation between Stic Investments and Cytogen
Assuming the 90 days trading horizon Stic Investments is expected to under-perform the Cytogen. But the stock apears to be less risky and, when comparing its historical volatility, Stic Investments is 4.3 times less risky than Cytogen. The stock trades about -0.03 of its potential returns per unit of risk. The Cytogen is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 466,500 in Cytogen on October 13, 2024 and sell it today you would earn a total of 0.00 from holding Cytogen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stic Investments vs. Cytogen
Performance |
| Timeline |
| Stic Investments |
| Cytogen |
Stic Investments and Cytogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and Cytogen
The main advantage of trading using opposite Stic Investments and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.| Stic Investments vs. Sangsin Energy Display | Stic Investments vs. Top Material Co | Stic Investments vs. Daesung Hi Tech Co | Stic Investments vs. Inzi Display CoLtd |
| Cytogen vs. Stic Investments | Cytogen vs. INNOX Advanced Materials | Cytogen vs. Phoenix Materials Co | Cytogen vs. NH Investment Securities |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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