Correlation Between CREO MEDICAL and HK Electric
Can any of the company-specific risk be diversified away by investing in both CREO MEDICAL and HK Electric 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 HK Electric 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 HK Electric Investments, you can compare the effects of market volatilities on CREO MEDICAL and HK Electric 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 HK Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREO MEDICAL and HK Electric.
Diversification Opportunities for CREO MEDICAL and HK Electric
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CREO and HKT is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding CREO MEDICAL GRP and HK Electric Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Electric Investments 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 HK Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Electric Investments has no effect on the direction of CREO MEDICAL i.e., CREO MEDICAL and HK Electric go up and down completely randomly.
Pair Corralation between CREO MEDICAL and HK Electric
Assuming the 90 days horizon CREO MEDICAL GRP is expected to under-perform the HK Electric. In addition to that, CREO MEDICAL is 5.28 times more volatile than HK Electric Investments. It trades about -0.13 of its total potential returns per unit of risk. HK Electric Investments is currently generating about -0.12 per unit of volatility. If you would invest 65.00 in HK Electric Investments on November 8, 2024 and sell it today you would lose (1.00) from holding HK Electric Investments or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CREO MEDICAL GRP vs. HK Electric Investments
Performance |
| Timeline |
| CREO MEDICAL GRP |
| HK Electric Investments |
CREO MEDICAL and HK Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREO MEDICAL and HK Electric
The main advantage of trading using opposite CREO MEDICAL and HK Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREO MEDICAL position performs unexpectedly, HK Electric 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 HK Electric will offset losses from the drop in HK Electric's long position.| CREO MEDICAL vs. WESANA HEALTH HOLD | CREO MEDICAL vs. MACOM Technology Solutions | CREO MEDICAL vs. Firan Technology Group | CREO MEDICAL vs. Universal Health Realty |
| HK Electric vs. US FOODS HOLDING | HK Electric vs. NH Foods | HK Electric vs. SENECA FOODS A | HK Electric vs. USU Software AG |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |