Correlation Between CN MODERN and SCANDMEDICAL SOLDK
Can any of the company-specific risk be diversified away by investing in both CN MODERN and SCANDMEDICAL SOLDK 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 CN MODERN and SCANDMEDICAL SOLDK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN MODERN DAIRY and SCANDMEDICAL SOLDK 040, you can compare the effects of market volatilities on CN MODERN and SCANDMEDICAL SOLDK 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 CN MODERN with a short position of SCANDMEDICAL SOLDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN MODERN and SCANDMEDICAL SOLDK.
Diversification Opportunities for CN MODERN and SCANDMEDICAL SOLDK
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 07M and SCANDMEDICAL is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CN MODERN DAIRY and SCANDMEDICAL SOLDK 040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDMEDICAL SOLDK 040 and CN MODERN 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 CN MODERN DAIRY are associated (or correlated) with SCANDMEDICAL SOLDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDMEDICAL SOLDK 040 has no effect on the direction of CN MODERN i.e., CN MODERN and SCANDMEDICAL SOLDK go up and down completely randomly.
Pair Corralation between CN MODERN and SCANDMEDICAL SOLDK
Assuming the 90 days trading horizon CN MODERN DAIRY is expected to generate 1.87 times more return on investment than SCANDMEDICAL SOLDK. However, CN MODERN is 1.87 times more volatile than SCANDMEDICAL SOLDK 040. It trades about 0.02 of its potential returns per unit of risk. SCANDMEDICAL SOLDK 040 is currently generating about -0.03 per unit of risk. If you would invest 10.00 in CN MODERN DAIRY on October 25, 2024 and sell it today you would earn a total of 0.00 from holding CN MODERN DAIRY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CN MODERN DAIRY vs. SCANDMEDICAL SOLDK 040
Performance |
| Timeline |
| CN MODERN DAIRY |
| SCANDMEDICAL SOLDK 040 |
CN MODERN and SCANDMEDICAL SOLDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN MODERN and SCANDMEDICAL SOLDK
The main advantage of trading using opposite CN MODERN and SCANDMEDICAL SOLDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN MODERN position performs unexpectedly, SCANDMEDICAL SOLDK 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 SCANDMEDICAL SOLDK will offset losses from the drop in SCANDMEDICAL SOLDK's long position.| CN MODERN vs. TRADEDOUBLER AB SK | CN MODERN vs. SIDETRADE EO 1 | CN MODERN vs. FLOW TRADERS LTD | CN MODERN vs. Corporate Office Properties |
| SCANDMEDICAL SOLDK vs. Caseys General Stores | SCANDMEDICAL SOLDK vs. STGEORGE MINING LTD | SCANDMEDICAL SOLDK vs. COSTCO WHOLESALE CDR | SCANDMEDICAL SOLDK vs. Ross Stores |
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 CEOs Directory module to screen CEOs from public companies around the world.
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