Correlation Between CSL and SPAGO NANOMEDICAL
Can any of the company-specific risk be diversified away by investing in both CSL and SPAGO NANOMEDICAL 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 CSL and SPAGO NANOMEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSL Limited and SPAGO NANOMEDICAL AB, you can compare the effects of market volatilities on CSL and SPAGO NANOMEDICAL 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 CSL with a short position of SPAGO NANOMEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and SPAGO NANOMEDICAL.
Diversification Opportunities for CSL and SPAGO NANOMEDICAL
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSL and SPAGO is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CSL Limited and SPAGO NANOMEDICAL AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPAGO NANOMEDICAL and CSL 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 CSL Limited are associated (or correlated) with SPAGO NANOMEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPAGO NANOMEDICAL has no effect on the direction of CSL i.e., CSL and SPAGO NANOMEDICAL go up and down completely randomly.
Pair Corralation between CSL and SPAGO NANOMEDICAL
Assuming the 90 days horizon CSL Limited is expected to under-perform the SPAGO NANOMEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, CSL Limited is 5.34 times less risky than SPAGO NANOMEDICAL. The stock trades about -0.02 of its potential returns per unit of risk. The SPAGO NANOMEDICAL AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2.42 in SPAGO NANOMEDICAL AB on November 3, 2024 and sell it today you would lose (0.48) from holding SPAGO NANOMEDICAL AB or give up 19.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSL Limited vs. SPAGO NANOMEDICAL AB
Performance |
| Timeline |
| CSL Limited |
| SPAGO NANOMEDICAL |
CSL and SPAGO NANOMEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSL and SPAGO NANOMEDICAL
The main advantage of trading using opposite CSL and SPAGO NANOMEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL position performs unexpectedly, SPAGO NANOMEDICAL 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 SPAGO NANOMEDICAL will offset losses from the drop in SPAGO NANOMEDICAL's long position.| CSL vs. Hua Hong Semiconductor | CSL vs. East Africa Metals | CSL vs. Stag Industrial | CSL vs. Taiwan Semiconductor Manufacturing |
| SPAGO NANOMEDICAL vs. Novo Nordisk AS | SPAGO NANOMEDICAL vs. CSL LTD SPONADR | SPAGO NANOMEDICAL vs. Mercedes Benz Group AG | SPAGO NANOMEDICAL vs. Vertex Pharmaceuticals Incorporated |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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