Correlation Between Creo Medical and Sydbank
Can any of the company-specific risk be diversified away by investing in both Creo Medical and Sydbank 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 Creo Medical and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creo Medical Group and Sydbank, you can compare the effects of market volatilities on Creo Medical and Sydbank 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 Creo Medical with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creo Medical and Sydbank.
Diversification Opportunities for Creo Medical and Sydbank
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Creo and Sydbank is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Creo Medical Group and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Creo 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 Creo Medical Group are associated (or correlated) with Sydbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank has no effect on the direction of Creo Medical i.e., Creo Medical and Sydbank go up and down completely randomly.
Pair Corralation between Creo Medical and Sydbank
Assuming the 90 days trading horizon Creo Medical Group is expected to generate 1.88 times more return on investment than Sydbank. However, Creo Medical is 1.88 times more volatile than Sydbank. It trades about 0.34 of its potential returns per unit of risk. Sydbank is currently generating about -0.01 per unit of risk. If you would invest 1,410 in Creo Medical Group on October 12, 2024 and sell it today you would earn a total of 540.00 from holding Creo Medical Group or generate 38.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creo Medical Group vs. Sydbank
Performance |
| Timeline |
| Creo Medical Group |
| Sydbank |
Creo Medical and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creo Medical and Sydbank
The main advantage of trading using opposite Creo Medical and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creo Medical position performs unexpectedly, Sydbank 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 Sydbank will offset losses from the drop in Sydbank's long position.| Creo Medical vs. Seche Environnement SA | Creo Medical vs. Europa Metals | Creo Medical vs. Vulcan Materials Co | Creo Medical vs. Applied Materials |
| Sydbank vs. Fresenius Medical Care | Sydbank vs. Creo Medical Group | Sydbank vs. Medical Properties Trust | Sydbank vs. Advanced Medical Solutions |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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