Correlation Between AeroSpace Technology and CU Medical
Can any of the company-specific risk be diversified away by investing in both AeroSpace Technology and CU 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 AeroSpace Technology and CU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AeroSpace Technology of and CU Medical Systems, you can compare the effects of market volatilities on AeroSpace Technology and CU 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 AeroSpace Technology with a short position of CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AeroSpace Technology and CU Medical.
Diversification Opportunities for AeroSpace Technology and CU Medical
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AeroSpace and 115480 is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding AeroSpace Technology of and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems and AeroSpace Technology 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 AeroSpace Technology of are associated (or correlated) with CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of AeroSpace Technology i.e., AeroSpace Technology and CU Medical go up and down completely randomly.
Pair Corralation between AeroSpace Technology and CU Medical
Assuming the 90 days trading horizon AeroSpace Technology of is expected to under-perform the CU Medical. In addition to that, AeroSpace Technology is 2.61 times more volatile than CU Medical Systems. It trades about -0.05 of its total potential returns per unit of risk. CU Medical Systems is currently generating about -0.03 per unit of volatility. If you would invest 79,300 in CU Medical Systems on November 3, 2024 and sell it today you would lose (12,700) from holding CU Medical Systems or give up 16.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.34% |
| Values | Daily Returns |
AeroSpace Technology of vs. CU Medical Systems
Performance |
| Timeline |
| AeroSpace Technology |
| CU Medical Systems |
AeroSpace Technology and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AeroSpace Technology and CU Medical
The main advantage of trading using opposite AeroSpace Technology and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AeroSpace Technology position performs unexpectedly, CU 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 CU Medical will offset losses from the drop in CU Medical's long position.| AeroSpace Technology vs. Cuckoo Electronics Co | AeroSpace Technology vs. Kolon Plastics | AeroSpace Technology vs. Ecoplastic | AeroSpace Technology vs. RF Materials Co |
| CU Medical vs. Puloon Technology | CU Medical vs. KG Eco Technology | CU Medical vs. Netmarble Games Corp | CU Medical vs. iNtRON Biotechnology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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