Correlation Between Cytogen and STCube
Can any of the company-specific risk be diversified away by investing in both Cytogen and STCube 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 Cytogen and STCube into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytogen and STCube Inc, you can compare the effects of market volatilities on Cytogen and STCube 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 Cytogen with a short position of STCube. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytogen and STCube.
Diversification Opportunities for Cytogen and STCube
Very weak diversification
The 3 months correlation between Cytogen and STCube is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cytogen and STCube Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STCube Inc and Cytogen 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 Cytogen are associated (or correlated) with STCube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STCube Inc has no effect on the direction of Cytogen i.e., Cytogen and STCube go up and down completely randomly.
Pair Corralation between Cytogen and STCube
Assuming the 90 days trading horizon Cytogen is expected to under-perform the STCube. But the stock apears to be less risky and, when comparing its historical volatility, Cytogen is 1.08 times less risky than STCube. The stock trades about -0.32 of its potential returns per unit of risk. The STCube Inc is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 575,000 in STCube Inc on September 12, 2024 and sell it today you would lose (75,500) from holding STCube Inc or give up 13.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cytogen vs. STCube Inc
Performance |
| Timeline |
| Cytogen |
| STCube Inc |
Cytogen and STCube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytogen and STCube
The main advantage of trading using opposite Cytogen and STCube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytogen position performs unexpectedly, STCube 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 STCube will offset losses from the drop in STCube's long position.| Cytogen vs. YG Entertainment | Cytogen vs. Tamul Multimedia Co | Cytogen vs. J Steel Co | Cytogen vs. Husteel |
| STCube vs. Samhyun Steel Co | STCube vs. Lotte Energy Materials | STCube vs. Finebesteel | STCube vs. BooKook Steel 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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