Correlation Between Greater Than and Corline Biomedical
Can any of the company-specific risk be diversified away by investing in both Greater Than and Corline Biomedical 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 Greater Than and Corline Biomedical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greater Than AB and Corline Biomedical AB, you can compare the effects of market volatilities on Greater Than and Corline Biomedical 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 Greater Than with a short position of Corline Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greater Than and Corline Biomedical.
Diversification Opportunities for Greater Than and Corline Biomedical
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greater and Corline is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Greater Than AB and Corline Biomedical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corline Biomedical and Greater Than 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 Greater Than AB are associated (or correlated) with Corline Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corline Biomedical has no effect on the direction of Greater Than i.e., Greater Than and Corline Biomedical go up and down completely randomly.
Pair Corralation between Greater Than and Corline Biomedical
Assuming the 90 days trading horizon Greater Than AB is expected to under-perform the Corline Biomedical. But the stock apears to be less risky and, when comparing its historical volatility, Greater Than AB is 1.12 times less risky than Corline Biomedical. The stock trades about -0.19 of its potential returns per unit of risk. The Corline Biomedical AB is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 802.00 in Corline Biomedical AB on September 1, 2024 and sell it today you would lose (132.00) from holding Corline Biomedical AB or give up 16.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greater Than AB vs. Corline Biomedical AB
Performance |
| Timeline |
| Greater Than AB |
| Corline Biomedical |
Greater Than and Corline Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greater Than and Corline Biomedical
The main advantage of trading using opposite Greater Than and Corline Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greater Than position performs unexpectedly, Corline Biomedical 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 Corline Biomedical will offset losses from the drop in Corline Biomedical's long position.| Greater Than vs. BIMobject AB | Greater Than vs. IAR Systems Group | Greater Than vs. FormPipe Software AB | Greater Than vs. Generic Sweden publ |
| Corline Biomedical vs. Cantargia AB | Corline Biomedical vs. Kancera AB | Corline Biomedical vs. Gabather AB | Corline Biomedical vs. Genovis AB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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