Correlation Between Cembra Money and Futura Medical
Can any of the company-specific risk be diversified away by investing in both Cembra Money and Futura 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 Cembra Money and Futura Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cembra Money Bank and Futura Medical, you can compare the effects of market volatilities on Cembra Money and Futura 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 Cembra Money with a short position of Futura Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cembra Money and Futura Medical.
Diversification Opportunities for Cembra Money and Futura Medical
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cembra and Futura is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cembra Money Bank and Futura Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futura Medical and Cembra Money 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 Cembra Money Bank are associated (or correlated) with Futura Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futura Medical has no effect on the direction of Cembra Money i.e., Cembra Money and Futura Medical go up and down completely randomly.
Pair Corralation between Cembra Money and Futura Medical
Assuming the 90 days trading horizon Cembra Money Bank is expected to generate 0.42 times more return on investment than Futura Medical. However, Cembra Money Bank is 2.38 times less risky than Futura Medical. It trades about 0.73 of its potential returns per unit of risk. Futura Medical is currently generating about -0.07 per unit of risk. If you would invest 8,090 in Cembra Money Bank on October 20, 2024 and sell it today you would earn a total of 795.00 from holding Cembra Money Bank or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cembra Money Bank vs. Futura Medical
Performance |
| Timeline |
| Cembra Money Bank |
| Futura Medical |
Cembra Money and Futura Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cembra Money and Futura Medical
The main advantage of trading using opposite Cembra Money and Futura Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cembra Money position performs unexpectedly, Futura 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 Futura Medical will offset losses from the drop in Futura Medical's long position.| Cembra Money vs. Supermarket Income REIT | Cembra Money vs. Ion Beam Applications | Cembra Money vs. Premier Foods PLC | Cembra Money vs. Ebro Foods |
| Futura Medical vs. Bloomsbury Publishing Plc | Futura Medical vs. Fevertree Drinks Plc | Futura Medical vs. Extra Space Storage | Futura Medical vs. Metals Exploration Plc |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |