Correlation Between CREO MEDICAL and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both CREO MEDICAL and MEDICAL FACILITIES 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 CREO MEDICAL and MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREO MEDICAL GRP and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on CREO MEDICAL and MEDICAL FACILITIES 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 CREO MEDICAL with a short position of MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREO MEDICAL and MEDICAL FACILITIES.
Diversification Opportunities for CREO MEDICAL and MEDICAL FACILITIES
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CREO and MEDICAL is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding CREO MEDICAL GRP and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW and CREO 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 CREO MEDICAL GRP are associated (or correlated) with MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of CREO MEDICAL i.e., CREO MEDICAL and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between CREO MEDICAL and MEDICAL FACILITIES
Assuming the 90 days horizon CREO MEDICAL GRP is expected to under-perform the MEDICAL FACILITIES. In addition to that, CREO MEDICAL is 1.74 times more volatile than MEDICAL FACILITIES NEW. It trades about -0.13 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.13 per unit of volatility. If you would invest 1,030 in MEDICAL FACILITIES NEW on November 3, 2024 and sell it today you would earn a total of 50.00 from holding MEDICAL FACILITIES NEW or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREO MEDICAL GRP vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| CREO MEDICAL GRP |
| MEDICAL FACILITIES NEW |
CREO MEDICAL and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREO MEDICAL and MEDICAL FACILITIES
The main advantage of trading using opposite CREO MEDICAL and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREO MEDICAL position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| CREO MEDICAL vs. Scottish Mortgage Investment | CREO MEDICAL vs. BOSTON BEER A | CREO MEDICAL vs. HK Electric Investments | CREO MEDICAL vs. CHRYSALIS INVESTMENTS LTD |
| MEDICAL FACILITIES vs. Semiconductor Manufacturing International | MEDICAL FACILITIES vs. ELMOS SEMICONDUCTOR | MEDICAL FACILITIES vs. TOREX SEMICONDUCTOR LTD | MEDICAL FACILITIES vs. Universal Health Realty |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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