Correlation Between GM and Cytosorbents Crp
Can any of the company-specific risk be diversified away by investing in both GM and Cytosorbents Crp 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 GM and Cytosorbents Crp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Cytosorbents Crp, you can compare the effects of market volatilities on GM and Cytosorbents Crp 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 GM with a short position of Cytosorbents Crp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Cytosorbents Crp.
Diversification Opportunities for GM and Cytosorbents Crp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and Cytosorbents is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Cytosorbents Crp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytosorbents Crp and GM 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 General Motors are associated (or correlated) with Cytosorbents Crp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytosorbents Crp has no effect on the direction of GM i.e., GM and Cytosorbents Crp go up and down completely randomly.
Pair Corralation between GM and Cytosorbents Crp
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Cytosorbents Crp. But the stock apears to be less risky and, when comparing its historical volatility, General Motors is 1.43 times less risky than Cytosorbents Crp. The stock trades about -0.05 of its potential returns per unit of risk. The Cytosorbents Crp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Cytosorbents Crp on November 3, 2024 and sell it today you would earn a total of 8.50 from holding Cytosorbents Crp or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Cytosorbents Crp
Performance |
| Timeline |
| General Motors |
| Cytosorbents Crp |
GM and Cytosorbents Crp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Cytosorbents Crp
The main advantage of trading using opposite GM and Cytosorbents Crp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Cytosorbents Crp 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 Cytosorbents Crp will offset losses from the drop in Cytosorbents Crp's long position.The idea behind General Motors and Cytosorbents Crp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cytosorbents Crp vs. LivaNova PLC | Cytosorbents Crp vs. Electromed | Cytosorbents Crp vs. Orthopediatrics Corp | Cytosorbents Crp vs. SurModics |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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