Correlation Between Clinical Laserthermia and SpectraCure
Can any of the company-specific risk be diversified away by investing in both Clinical Laserthermia and SpectraCure 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 Clinical Laserthermia and SpectraCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clinical Laserthermia Systems and SpectraCure AB, you can compare the effects of market volatilities on Clinical Laserthermia and SpectraCure 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 Clinical Laserthermia with a short position of SpectraCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clinical Laserthermia and SpectraCure.
Diversification Opportunities for Clinical Laserthermia and SpectraCure
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clinical and SpectraCure is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Clinical Laserthermia Systems and SpectraCure AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpectraCure AB and Clinical Laserthermia 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 Clinical Laserthermia Systems are associated (or correlated) with SpectraCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpectraCure AB has no effect on the direction of Clinical Laserthermia i.e., Clinical Laserthermia and SpectraCure go up and down completely randomly.
Pair Corralation between Clinical Laserthermia and SpectraCure
Assuming the 90 days trading horizon Clinical Laserthermia Systems is expected to generate 1.97 times more return on investment than SpectraCure. However, Clinical Laserthermia is 1.97 times more volatile than SpectraCure AB. It trades about -0.01 of its potential returns per unit of risk. SpectraCure AB is currently generating about -0.04 per unit of risk. If you would invest 4,094 in Clinical Laserthermia Systems on September 1, 2024 and sell it today you would lose (3,674) from holding Clinical Laserthermia Systems or give up 89.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clinical Laserthermia Systems vs. SpectraCure AB
Performance |
| Timeline |
| Clinical Laserthermia |
| SpectraCure AB |
Clinical Laserthermia and SpectraCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clinical Laserthermia and SpectraCure
The main advantage of trading using opposite Clinical Laserthermia and SpectraCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clinical Laserthermia position performs unexpectedly, SpectraCure 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 SpectraCure will offset losses from the drop in SpectraCure's long position.| Clinical Laserthermia vs. Xvivo Perfusion AB | Clinical Laserthermia vs. BICO Group AB | Clinical Laserthermia vs. Bactiguard Holding AB | Clinical Laserthermia vs. Stille AB |
| SpectraCure vs. Maha Energy AB | SpectraCure vs. Saniona AB | SpectraCure vs. Kancera AB | SpectraCure vs. SolTech Energy Sweden |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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