Correlation Between Cerus and Cytosorbents Crp
Can any of the company-specific risk be diversified away by investing in both Cerus and Cytosorbents Crp 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 Cerus and Cytosorbents Crp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cerus and Cytosorbents Crp, you can compare the effects of market volatilities on Cerus and Cytosorbents Crp 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 Cerus with a short position of Cytosorbents Crp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerus and Cytosorbents Crp.
Diversification Opportunities for Cerus and Cytosorbents Crp
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cerus and Cytosorbents is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cerus and Cytosorbents Crp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytosorbents Crp and Cerus 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 Cerus are associated (or correlated) with Cytosorbents Crp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytosorbents Crp has no effect on the direction of Cerus i.e., Cerus and Cytosorbents Crp go up and down completely randomly.
Pair Corralation between Cerus and Cytosorbents Crp
Given the investment horizon of 90 days Cerus is expected to under-perform the Cytosorbents Crp. But the stock apears to be less risky and, when comparing its historical volatility, Cerus is 1.18 times less risky than Cytosorbents Crp. The stock trades about -0.01 of its potential returns per unit of risk. The Cytosorbents Crp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 155.00 in Cytosorbents Crp on September 20, 2024 and sell it today you would lose (74.00) from holding Cytosorbents Crp or give up 47.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cerus vs. Cytosorbents Crp
Performance |
| Timeline |
| Cerus |
| Cytosorbents Crp |
Cerus and Cytosorbents Crp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cerus and Cytosorbents Crp
The main advantage of trading using opposite Cerus and Cytosorbents Crp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerus position performs unexpectedly, Cytosorbents Crp 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 Cytosorbents Crp will offset losses from the drop in Cytosorbents Crp's long position.The idea behind Cerus and Cytosorbents Crp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cytosorbents Crp vs. LivaNova PLC | Cytosorbents Crp vs. Electromed | Cytosorbents Crp vs. Orthopediatrics Corp | Cytosorbents Crp vs. SurModics |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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