Correlation Between Creo Medical and Beeks Trading
Can any of the company-specific risk be diversified away by investing in both Creo Medical and Beeks Trading 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 Beeks Trading 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 Beeks Trading, you can compare the effects of market volatilities on Creo Medical and Beeks Trading 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 Beeks Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creo Medical and Beeks Trading.
Diversification Opportunities for Creo Medical and Beeks Trading
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Creo and Beeks is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Creo Medical Group and Beeks Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beeks Trading 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 Beeks Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beeks Trading has no effect on the direction of Creo Medical i.e., Creo Medical and Beeks Trading go up and down completely randomly.
Pair Corralation between Creo Medical and Beeks Trading
Assuming the 90 days trading horizon Creo Medical Group is expected to generate 1.54 times more return on investment than Beeks Trading. However, Creo Medical is 1.54 times more volatile than Beeks Trading. It trades about 0.05 of its potential returns per unit of risk. Beeks Trading is currently generating about 0.03 per unit of risk. If you would invest 1,860 in Creo Medical Group on October 11, 2024 and sell it today you would earn a total of 90.00 from holding Creo Medical Group or generate 4.84% 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. Beeks Trading
Performance |
| Timeline |
| Creo Medical Group |
| Beeks Trading |
Creo Medical and Beeks Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creo Medical and Beeks Trading
The main advantage of trading using opposite Creo Medical and Beeks Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creo Medical position performs unexpectedly, Beeks Trading 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 Beeks Trading will offset losses from the drop in Beeks Trading's long position.| Creo Medical vs. Amedeo Air Four | Creo Medical vs. Veolia Environnement VE | Creo Medical vs. Pentair PLC | Creo Medical vs. Wizz Air Holdings |
| Beeks Trading vs. Charter Communications Cl | Beeks Trading vs. Zoom Video Communications | Beeks Trading vs. Creo Medical Group | Beeks Trading vs. Tata Steel 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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