Correlation Between Cytogen and Alton Sports
Can any of the company-specific risk be diversified away by investing in both Cytogen and Alton Sports 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 Alton Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytogen and Alton Sports CoLtd, you can compare the effects of market volatilities on Cytogen and Alton Sports 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 Alton Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytogen and Alton Sports.
Diversification Opportunities for Cytogen and Alton Sports
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cytogen and Alton is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cytogen and Alton Sports CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alton Sports CoLtd 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 Alton Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alton Sports CoLtd has no effect on the direction of Cytogen i.e., Cytogen and Alton Sports go up and down completely randomly.
Pair Corralation between Cytogen and Alton Sports
Assuming the 90 days trading horizon Cytogen is expected to generate 1.6 times more return on investment than Alton Sports. However, Cytogen is 1.6 times more volatile than Alton Sports CoLtd. It trades about -0.05 of its potential returns per unit of risk. Alton Sports CoLtd is currently generating about -0.08 per unit of risk. If you would invest 1,599,000 in Cytogen on October 12, 2024 and sell it today you would lose (1,132,500) from holding Cytogen or give up 70.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cytogen vs. Alton Sports CoLtd
Performance |
| Timeline |
| Cytogen |
| Alton Sports CoLtd |
Cytogen and Alton Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytogen and Alton Sports
The main advantage of trading using opposite Cytogen and Alton Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytogen position performs unexpectedly, Alton Sports 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 Alton Sports will offset losses from the drop in Alton Sports' long position.| Cytogen vs. Stic Investments | Cytogen vs. INNOX Advanced Materials | Cytogen vs. Phoenix Materials Co | Cytogen vs. NH Investment Securities |
| Alton Sports vs. AptaBio Therapeutics | Alton Sports vs. Cytogen | Alton Sports vs. Woori Technology Investment | Alton Sports vs. ABL Bio |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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