Correlation Between Grand Vision and Creo Medical
Can any of the company-specific risk be diversified away by investing in both Grand Vision and Creo Medical 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 Grand Vision and Creo Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Vision Media and Creo Medical Group, you can compare the effects of market volatilities on Grand Vision and Creo Medical 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 Grand Vision with a short position of Creo Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Vision and Creo Medical.
Diversification Opportunities for Grand Vision and Creo Medical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grand and Creo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Grand Vision Media and Creo Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creo Medical Group and Grand Vision 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 Grand Vision Media are associated (or correlated) with Creo Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creo Medical Group has no effect on the direction of Grand Vision i.e., Grand Vision and Creo Medical go up and down completely randomly.
Pair Corralation between Grand Vision and Creo Medical
Assuming the 90 days trading horizon Grand Vision Media is expected to generate 1.0 times more return on investment than Creo Medical. However, Grand Vision Media is 1.0 times less risky than Creo Medical. It trades about -0.12 of its potential returns per unit of risk. Creo Medical Group is currently generating about -0.26 per unit of risk. If you would invest 135.00 in Grand Vision Media on September 3, 2024 and sell it today you would lose (37.00) from holding Grand Vision Media or give up 27.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Vision Media vs. Creo Medical Group
Performance |
| Timeline |
| Grand Vision Media |
| Creo Medical Group |
Grand Vision and Creo Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Vision and Creo Medical
The main advantage of trading using opposite Grand Vision and Creo Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Vision position performs unexpectedly, Creo Medical 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 Creo Medical will offset losses from the drop in Creo Medical's long position.| Grand Vision vs. Universal Display Corp | Grand Vision vs. Universal Health Services | Grand Vision vs. HCA Healthcare | Grand Vision vs. Inspiration Healthcare Group |
| Creo Medical vs. Atresmedia | Creo Medical vs. Cizzle Biotechnology Holdings | Creo Medical vs. Liberty Media Corp | Creo Medical vs. Grand Vision Media |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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