Correlation Between Cytogen and Medy Tox
Can any of the company-specific risk be diversified away by investing in both Cytogen and Medy Tox 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 Medy Tox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytogen and Medy Tox, you can compare the effects of market volatilities on Cytogen and Medy Tox 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 Medy Tox. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytogen and Medy Tox.
Diversification Opportunities for Cytogen and Medy Tox
Significant diversification
The 3 months correlation between Cytogen and Medy is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Cytogen and Medy Tox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medy Tox 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 Medy Tox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medy Tox has no effect on the direction of Cytogen i.e., Cytogen and Medy Tox go up and down completely randomly.
Pair Corralation between Cytogen and Medy Tox
Assuming the 90 days trading horizon Cytogen is expected to under-perform the Medy Tox. In addition to that, Cytogen is 1.19 times more volatile than Medy Tox. It trades about -0.07 of its total potential returns per unit of risk. Medy Tox is currently generating about -0.05 per unit of volatility. If you would invest 21,230,800 in Medy Tox on September 4, 2024 and sell it today you would lose (8,660,800) from holding Medy Tox or give up 40.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cytogen vs. Medy Tox
Performance |
| Timeline |
| Cytogen |
| Medy Tox |
Cytogen and Medy Tox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytogen and Medy Tox
The main advantage of trading using opposite Cytogen and Medy Tox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytogen position performs unexpectedly, Medy Tox 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 Medy Tox will offset losses from the drop in Medy Tox's long position.| Cytogen vs. Sejong Telecom | Cytogen vs. Shinhan Inverse Silver | Cytogen vs. HB Technology TD | Cytogen vs. Dong A Steel Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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