Correlation Between CREO MEDICAL and Industria
Can any of the company-specific risk be diversified away by investing in both CREO MEDICAL and Industria 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 Industria 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 Industria de Diseno, you can compare the effects of market volatilities on CREO MEDICAL and Industria 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 Industria. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREO MEDICAL and Industria.
Diversification Opportunities for CREO MEDICAL and Industria
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CREO and Industria is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding CREO MEDICAL GRP and Industria de Diseno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industria de Diseno 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 Industria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industria de Diseno has no effect on the direction of CREO MEDICAL i.e., CREO MEDICAL and Industria go up and down completely randomly.
Pair Corralation between CREO MEDICAL and Industria
Assuming the 90 days horizon CREO MEDICAL GRP is expected to under-perform the Industria. In addition to that, CREO MEDICAL is 1.88 times more volatile than Industria de Diseno. It trades about -0.13 of its total potential returns per unit of risk. Industria de Diseno is currently generating about 0.18 per unit of volatility. If you would invest 4,966 in Industria de Diseno on November 3, 2024 and sell it today you would earn a total of 314.00 from holding Industria de Diseno or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREO MEDICAL GRP vs. Industria de Diseno
Performance |
| Timeline |
| CREO MEDICAL GRP |
| Industria de Diseno |
CREO MEDICAL and Industria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREO MEDICAL and Industria
The main advantage of trading using opposite CREO MEDICAL and Industria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREO MEDICAL position performs unexpectedly, Industria 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 Industria will offset losses from the drop in Industria'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 |
| Industria vs. The TJX Companies | Industria vs. Fast Retailing Co | Industria vs. Lululemon Athletica | Industria vs. NEXT 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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