Correlation Between Creotech Instruments and Medicalg
Can any of the company-specific risk be diversified away by investing in both Creotech Instruments and Medicalg 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 Creotech Instruments and Medicalg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creotech Instruments SA and Medicalg, you can compare the effects of market volatilities on Creotech Instruments and Medicalg 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 Creotech Instruments with a short position of Medicalg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creotech Instruments and Medicalg.
Diversification Opportunities for Creotech Instruments and Medicalg
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Creotech and Medicalg is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Creotech Instruments SA and Medicalg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medicalg and Creotech Instruments 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 Creotech Instruments SA are associated (or correlated) with Medicalg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medicalg has no effect on the direction of Creotech Instruments i.e., Creotech Instruments and Medicalg go up and down completely randomly.
Pair Corralation between Creotech Instruments and Medicalg
Assuming the 90 days trading horizon Creotech Instruments SA is expected to generate 0.35 times more return on investment than Medicalg. However, Creotech Instruments SA is 2.87 times less risky than Medicalg. It trades about -0.15 of its potential returns per unit of risk. Medicalg is currently generating about -0.11 per unit of risk. If you would invest 15,200 in Creotech Instruments SA on September 5, 2024 and sell it today you would lose (700.00) from holding Creotech Instruments SA or give up 4.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Creotech Instruments SA vs. Medicalg
Performance |
| Timeline |
| Creotech Instruments |
| Medicalg |
Creotech Instruments and Medicalg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creotech Instruments and Medicalg
The main advantage of trading using opposite Creotech Instruments and Medicalg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creotech Instruments position performs unexpectedly, Medicalg 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 Medicalg will offset losses from the drop in Medicalg's long position.| Creotech Instruments vs. TEN SQUARE GAMES | Creotech Instruments vs. BNP Paribas Bank | Creotech Instruments vs. Skyline Investment SA | Creotech Instruments vs. True Games Syndicate |
| Medicalg vs. Asseco Business Solutions | Medicalg vs. Kogeneracja SA | Medicalg vs. Asseco South Eastern | Medicalg vs. Movie Games SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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