Correlation Between Creo Medical and Concurrent Technologies
Can any of the company-specific risk be diversified away by investing in both Creo Medical and Concurrent Technologies 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 Concurrent Technologies 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 Concurrent Technologies Plc, you can compare the effects of market volatilities on Creo Medical and Concurrent Technologies 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 Concurrent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creo Medical and Concurrent Technologies.
Diversification Opportunities for Creo Medical and Concurrent Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Creo and Concurrent is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Creo Medical Group and Concurrent Technologies Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concurrent Technologies 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 Concurrent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concurrent Technologies has no effect on the direction of Creo Medical i.e., Creo Medical and Concurrent Technologies go up and down completely randomly.
Pair Corralation between Creo Medical and Concurrent Technologies
Assuming the 90 days trading horizon Creo Medical is expected to generate 19.55 times less return on investment than Concurrent Technologies. In addition to that, Creo Medical is 1.02 times more volatile than Concurrent Technologies Plc. It trades about 0.03 of its total potential returns per unit of risk. Concurrent Technologies Plc is currently generating about 0.55 per unit of volatility. If you would invest 13,200 in Concurrent Technologies Plc on October 30, 2024 and sell it today you would earn a total of 5,000 from holding Concurrent Technologies Plc or generate 37.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creo Medical Group vs. Concurrent Technologies Plc
Performance |
| Timeline |
| Creo Medical Group |
| Concurrent Technologies |
Creo Medical and Concurrent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creo Medical and Concurrent Technologies
The main advantage of trading using opposite Creo Medical and Concurrent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creo Medical position performs unexpectedly, Concurrent Technologies 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 Concurrent Technologies will offset losses from the drop in Concurrent Technologies' long position.| Creo Medical vs. Air Products Chemicals | Creo Medical vs. Catalyst Media Group | Creo Medical vs. Catena Media PLC | Creo Medical vs. LBG Media PLC |
| Concurrent Technologies vs. First Majestic Silver | Concurrent Technologies vs. MTI Wireless Edge | Concurrent Technologies vs. Verizon Communications | Concurrent Technologies vs. Dairy Farm International |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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