Correlation Between Bank Central and ConforMIS
Can any of the company-specific risk be diversified away by investing in both Bank Central and ConforMIS 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 Bank Central and ConforMIS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and ConforMIS, you can compare the effects of market volatilities on Bank Central and ConforMIS 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 Bank Central with a short position of ConforMIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and ConforMIS.
Diversification Opportunities for Bank Central and ConforMIS
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and ConforMIS is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and ConforMIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConforMIS and Bank Central 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 Bank Central Asia are associated (or correlated) with ConforMIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConforMIS has no effect on the direction of Bank Central i.e., Bank Central and ConforMIS go up and down completely randomly.
Pair Corralation between Bank Central and ConforMIS
Assuming the 90 days horizon Bank Central is expected to generate 139.14 times less return on investment than ConforMIS. But when comparing it to its historical volatility, Bank Central Asia is 11.46 times less risky than ConforMIS. It trades about 0.02 of its potential returns per unit of risk. ConforMIS is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 113.00 in ConforMIS on September 1, 2024 and sell it today you would earn a total of 110.00 from holding ConforMIS or generate 97.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 8.33% |
| Values | Daily Returns |
Bank Central Asia vs. ConforMIS
Performance |
| Timeline |
| Bank Central Asia |
| ConforMIS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank Central and ConforMIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and ConforMIS
The main advantage of trading using opposite Bank Central and ConforMIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, ConforMIS 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 ConforMIS will offset losses from the drop in ConforMIS's long position.| Bank Central vs. Bank Mandiri Persero | Bank Central vs. Piraeus Bank SA | Bank Central vs. Kasikornbank Public Co | Bank Central vs. Turkiye Garanti Bankasi |
| ConforMIS vs. Bone Biologics Corp | ConforMIS vs. Tivic Health Systems | ConforMIS vs. Bluejay Diagnostics | ConforMIS vs. Vivos Therapeutics |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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