Correlation Between Wireless Power and CU Medical
Can any of the company-specific risk be diversified away by investing in both Wireless Power and CU 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 Wireless Power and CU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wireless Power Amplifier and CU Medical Systems, you can compare the effects of market volatilities on Wireless Power and CU 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 Wireless Power with a short position of CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wireless Power and CU Medical.
Diversification Opportunities for Wireless Power and CU Medical
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wireless and 115480 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Wireless Power Amplifier and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems and Wireless Power 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 Wireless Power Amplifier are associated (or correlated) with CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of Wireless Power i.e., Wireless Power and CU Medical go up and down completely randomly.
Pair Corralation between Wireless Power and CU Medical
Assuming the 90 days trading horizon Wireless Power Amplifier is expected to generate 1.04 times more return on investment than CU Medical. However, Wireless Power is 1.04 times more volatile than CU Medical Systems. It trades about 0.21 of its potential returns per unit of risk. CU Medical Systems is currently generating about 0.09 per unit of risk. If you would invest 227,000 in Wireless Power Amplifier on September 19, 2024 and sell it today you would earn a total of 22,500 from holding Wireless Power Amplifier or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wireless Power Amplifier vs. CU Medical Systems
Performance |
| Timeline |
| Wireless Power Amplifier |
| CU Medical Systems |
Wireless Power and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wireless Power and CU Medical
The main advantage of trading using opposite Wireless Power and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wireless Power position performs unexpectedly, CU 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 CU Medical will offset losses from the drop in CU Medical's long position.| Wireless Power vs. CU Medical Systems | Wireless Power vs. Youngbo Chemical Co | Wireless Power vs. Green Cross Medical | Wireless Power vs. Innowireless Co |
| CU Medical vs. Samsung Electronics Co | CU Medical vs. Samsung Electronics Co | CU Medical vs. SK Hynix | CU Medical vs. SK Holdings 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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