Correlation Between MAG SILVER and CryoLife
Can any of the company-specific risk be diversified away by investing in both MAG SILVER and CryoLife 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 MAG SILVER and CryoLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG SILVER and CryoLife, you can compare the effects of market volatilities on MAG SILVER and CryoLife 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 MAG SILVER with a short position of CryoLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG SILVER and CryoLife.
Diversification Opportunities for MAG SILVER and CryoLife
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAG and CryoLife is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MAG SILVER and CryoLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryoLife and MAG SILVER 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 MAG SILVER are associated (or correlated) with CryoLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryoLife has no effect on the direction of MAG SILVER i.e., MAG SILVER and CryoLife go up and down completely randomly.
Pair Corralation between MAG SILVER and CryoLife
Assuming the 90 days trading horizon MAG SILVER is expected to generate 2.39 times less return on investment than CryoLife. In addition to that, MAG SILVER is 1.04 times more volatile than CryoLife. It trades about 0.03 of its total potential returns per unit of risk. CryoLife is currently generating about 0.08 per unit of volatility. If you would invest 1,240 in CryoLife on November 5, 2024 and sell it today you would earn a total of 1,745 from holding CryoLife or generate 140.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAG SILVER vs. CryoLife
Performance |
| Timeline |
| MAG SILVER |
| CryoLife |
MAG SILVER and CryoLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG SILVER and CryoLife
The main advantage of trading using opposite MAG SILVER and CryoLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG SILVER position performs unexpectedly, CryoLife 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 CryoLife will offset losses from the drop in CryoLife's long position.| MAG SILVER vs. Pebblebrook Hotel Trust | MAG SILVER vs. Wyndham Hotels Resorts | MAG SILVER vs. NORWEGIAN AIR SHUT | MAG SILVER vs. LAir Liquide SA |
| CryoLife vs. Zoom Video Communications | CryoLife vs. SOCKET MOBILE NEW | CryoLife vs. Entravision Communications | CryoLife vs. Verizon Communications |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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