Correlation Between Creo Medical and National Atomic
Can any of the company-specific risk be diversified away by investing in both Creo Medical and National Atomic 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 National Atomic 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 National Atomic Co, you can compare the effects of market volatilities on Creo Medical and National Atomic 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 National Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creo Medical and National Atomic.
Diversification Opportunities for Creo Medical and National Atomic
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Creo and National is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Creo Medical Group and National Atomic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Atomic 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 National Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Atomic has no effect on the direction of Creo Medical i.e., Creo Medical and National Atomic go up and down completely randomly.
Pair Corralation between Creo Medical and National Atomic
Assuming the 90 days trading horizon Creo Medical Group is expected to under-perform the National Atomic. In addition to that, Creo Medical is 1.74 times more volatile than National Atomic Co. It trades about -0.34 of its total potential returns per unit of risk. National Atomic Co is currently generating about 0.24 per unit of volatility. If you would invest 3,810 in National Atomic Co on September 4, 2024 and sell it today you would earn a total of 235.00 from holding National Atomic Co or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creo Medical Group vs. National Atomic Co
Performance |
| Timeline |
| Creo Medical Group |
| National Atomic |
Creo Medical and National Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creo Medical and National Atomic
The main advantage of trading using opposite Creo Medical and National Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creo Medical position performs unexpectedly, National Atomic 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 National Atomic will offset losses from the drop in National Atomic's long position.| Creo Medical vs. Samsung Electronics Co | Creo Medical vs. Samsung Electronics Co | Creo Medical vs. Hyundai Motor | Creo Medical vs. Toyota Motor Corp |
| National Atomic vs. Panther Metals PLC | National Atomic vs. LPKF Laser Electronics | National Atomic vs. Electronic Arts | National Atomic vs. Creo Medical Group |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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