Correlation Between GOODTECH ASA and CryoLife
Can any of the company-specific risk be diversified away by investing in both GOODTECH ASA and CryoLife 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 GOODTECH ASA and CryoLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOODTECH ASA A and CryoLife, you can compare the effects of market volatilities on GOODTECH ASA and CryoLife 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 GOODTECH ASA with a short position of CryoLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOODTECH ASA and CryoLife.
Diversification Opportunities for GOODTECH ASA and CryoLife
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GOODTECH and CryoLife is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding GOODTECH ASA A and CryoLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryoLife and GOODTECH ASA 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 GOODTECH ASA A are associated (or correlated) with CryoLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryoLife has no effect on the direction of GOODTECH ASA i.e., GOODTECH ASA and CryoLife go up and down completely randomly.
Pair Corralation between GOODTECH ASA and CryoLife
Assuming the 90 days horizon GOODTECH ASA A is expected to under-perform the CryoLife. But the stock apears to be less risky and, when comparing its historical volatility, GOODTECH ASA A is 1.09 times less risky than CryoLife. The stock trades about -0.17 of its potential returns per unit of risk. The CryoLife is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,435 in CryoLife on August 30, 2024 and sell it today you would earn a total of 285.00 from holding CryoLife or generate 11.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GOODTECH ASA A vs. CryoLife
Performance |
| Timeline |
| GOODTECH ASA A |
| CryoLife |
GOODTECH ASA and CryoLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOODTECH ASA and CryoLife
The main advantage of trading using opposite GOODTECH ASA and CryoLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOODTECH ASA position performs unexpectedly, CryoLife 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 CryoLife will offset losses from the drop in CryoLife's long position.| GOODTECH ASA vs. RETAIL FOOD GROUP | GOODTECH ASA vs. FLOW TRADERS LTD | GOODTECH ASA vs. AOYAMA TRADING | GOODTECH ASA vs. SCANSOURCE |
| CryoLife vs. Playtech plc | CryoLife vs. INTERSHOP Communications Aktiengesellschaft | CryoLife vs. ORMAT TECHNOLOGIES | CryoLife vs. Singapore Telecommunications Limited |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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