Correlation Between Corline Biomedical and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both Corline Biomedical and Clinical Laserthermia 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 Corline Biomedical and Clinical Laserthermia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corline Biomedical AB and Clinical Laserthermia Systems, you can compare the effects of market volatilities on Corline Biomedical and Clinical Laserthermia 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 Corline Biomedical with a short position of Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corline Biomedical and Clinical Laserthermia.
Diversification Opportunities for Corline Biomedical and Clinical Laserthermia
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corline and Clinical is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Corline Biomedical AB and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia and Corline Biomedical 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 Corline Biomedical AB are associated (or correlated) with Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of Corline Biomedical i.e., Corline Biomedical and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between Corline Biomedical and Clinical Laserthermia
Assuming the 90 days trading horizon Corline Biomedical AB is expected to generate 0.49 times more return on investment than Clinical Laserthermia. However, Corline Biomedical AB is 2.03 times less risky than Clinical Laserthermia. It trades about -0.07 of its potential returns per unit of risk. Clinical Laserthermia Systems is currently generating about -0.05 per unit of risk. If you would invest 1,505 in Corline Biomedical AB on August 30, 2024 and sell it today you would lose (865.00) from holding Corline Biomedical AB or give up 57.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corline Biomedical AB vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| Corline Biomedical |
| Clinical Laserthermia |
Corline Biomedical and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corline Biomedical and Clinical Laserthermia
The main advantage of trading using opposite Corline Biomedical and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corline Biomedical position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia's long position.| Corline Biomedical vs. Cantargia AB | Corline Biomedical vs. Kancera AB | Corline Biomedical vs. Gabather AB | Corline Biomedical vs. Genovis AB |
| Clinical Laserthermia vs. KABE Group AB | Clinical Laserthermia vs. IAR Systems Group | Clinical Laserthermia vs. Mekonomen AB | Clinical Laserthermia vs. eEducation Albert AB |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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