Correlation Between CREO MEDICAL and MeVis Medical
Can any of the company-specific risk be diversified away by investing in both CREO MEDICAL and MeVis 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 CREO MEDICAL and MeVis Medical 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 MeVis Medical Solutions, you can compare the effects of market volatilities on CREO MEDICAL and MeVis 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 CREO MEDICAL with a short position of MeVis Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREO MEDICAL and MeVis Medical.
Diversification Opportunities for CREO MEDICAL and MeVis Medical
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CREO and MeVis is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding CREO MEDICAL GRP and MeVis Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MeVis Medical Solutions 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 MeVis Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MeVis Medical Solutions has no effect on the direction of CREO MEDICAL i.e., CREO MEDICAL and MeVis Medical go up and down completely randomly.
Pair Corralation between CREO MEDICAL and MeVis Medical
Assuming the 90 days horizon CREO MEDICAL GRP is expected to generate 3.82 times more return on investment than MeVis Medical. However, CREO MEDICAL is 3.82 times more volatile than MeVis Medical Solutions. It trades about 0.02 of its potential returns per unit of risk. MeVis Medical Solutions is currently generating about -0.04 per unit of risk. If you would invest 22.00 in CREO MEDICAL GRP on October 14, 2024 and sell it today you would lose (1.00) from holding CREO MEDICAL GRP or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREO MEDICAL GRP vs. MeVis Medical Solutions
Performance |
| Timeline |
| CREO MEDICAL GRP |
| MeVis Medical Solutions |
CREO MEDICAL and MeVis Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREO MEDICAL and MeVis Medical
The main advantage of trading using opposite CREO MEDICAL and MeVis Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREO MEDICAL position performs unexpectedly, MeVis 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 MeVis Medical will offset losses from the drop in MeVis Medical's long position.| CREO MEDICAL vs. Apple Inc | CREO MEDICAL vs. Apple Inc | CREO MEDICAL vs. Apple Inc | CREO MEDICAL vs. Apple Inc |
| MeVis Medical vs. Perdoceo Education | MeVis Medical vs. Commonwealth Bank of | MeVis Medical vs. The Hanover Insurance | MeVis Medical vs. Ameriprise Financial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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