Correlation Between Excelsior Medical and CTCI Corp
Can any of the company-specific risk be diversified away by investing in both Excelsior Medical and CTCI Corp 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 Excelsior Medical and CTCI Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelsior Medical Co and CTCI Corp, you can compare the effects of market volatilities on Excelsior Medical and CTCI Corp 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 Excelsior Medical with a short position of CTCI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Medical and CTCI Corp.
Diversification Opportunities for Excelsior Medical and CTCI Corp
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Excelsior and CTCI is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Medical Co and CTCI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTCI Corp and Excelsior 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 Excelsior Medical Co are associated (or correlated) with CTCI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTCI Corp has no effect on the direction of Excelsior Medical i.e., Excelsior Medical and CTCI Corp go up and down completely randomly.
Pair Corralation between Excelsior Medical and CTCI Corp
Assuming the 90 days trading horizon Excelsior Medical is expected to generate 2.92 times less return on investment than CTCI Corp. But when comparing it to its historical volatility, Excelsior Medical Co is 1.73 times less risky than CTCI Corp. It trades about 0.01 of its potential returns per unit of risk. CTCI Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,920 in CTCI Corp on September 12, 2024 and sell it today you would earn a total of 120.00 from holding CTCI Corp or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelsior Medical Co vs. CTCI Corp
Performance |
| Timeline |
| Excelsior Medical |
| CTCI Corp |
Excelsior Medical and CTCI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Medical and CTCI Corp
The main advantage of trading using opposite Excelsior Medical and CTCI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Medical position performs unexpectedly, CTCI Corp 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 CTCI Corp will offset losses from the drop in CTCI Corp's long position.| Excelsior Medical vs. Apex Biotechnology Corp | Excelsior Medical vs. Ruentex Development Co | Excelsior Medical vs. WiseChip Semiconductor | Excelsior Medical vs. Novatek Microelectronics Corp |
| CTCI Corp vs. Taiwan Secom Co | CTCI Corp vs. Pou Chen Corp | CTCI Corp vs. Formosa Petrochemical Corp | CTCI Corp vs. Cheng Shin Rubber |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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