Correlation Between CU Medical and BIT Computer
Can any of the company-specific risk be diversified away by investing in both CU Medical and BIT Computer 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 CU Medical and BIT Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CU Medical Systems and BIT Computer Co, you can compare the effects of market volatilities on CU Medical and BIT Computer 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 CU Medical with a short position of BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of CU Medical and BIT Computer.
Diversification Opportunities for CU Medical and BIT Computer
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between 115480 and BIT is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CU Medical Systems and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer and CU 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 CU Medical Systems are associated (or correlated) with BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of CU Medical i.e., CU Medical and BIT Computer go up and down completely randomly.
Pair Corralation between CU Medical and BIT Computer
Assuming the 90 days trading horizon CU Medical Systems is expected to generate 1.03 times more return on investment than BIT Computer. However, CU Medical is 1.03 times more volatile than BIT Computer Co. It trades about 0.08 of its potential returns per unit of risk. BIT Computer Co is currently generating about 0.0 per unit of risk. If you would invest 68,700 in CU Medical Systems on October 23, 2024 and sell it today you would earn a total of 1,100 from holding CU Medical Systems or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CU Medical Systems vs. BIT Computer Co
Performance |
| Timeline |
| CU Medical Systems |
| BIT Computer |
CU Medical and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CU Medical and BIT Computer
The main advantage of trading using opposite CU Medical and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CU Medical position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| CU Medical vs. Top Material Co | CU Medical vs. Ecoplastic | CU Medical vs. National Plastic Co | CU Medical vs. Kolon Plastics |
| BIT Computer vs. Leaders Technology Investment | BIT Computer vs. Han Kook Steel | BIT Computer vs. Nature and Environment | BIT Computer vs. Fine Besteel Co |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |