Correlation Between SIEM OFFSHORE and CREO MEDICAL
Can any of the company-specific risk be diversified away by investing in both SIEM OFFSHORE 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 SIEM OFFSHORE and CREO MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEM OFFSHORE NEW and CREO MEDICAL GRP, you can compare the effects of market volatilities on SIEM OFFSHORE 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 SIEM OFFSHORE with a short position of CREO MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEM OFFSHORE and CREO MEDICAL.
Diversification Opportunities for SIEM OFFSHORE and CREO MEDICAL
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SIEM and CREO is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and CREO MEDICAL GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREO MEDICAL GRP and SIEM OFFSHORE 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 SIEM OFFSHORE NEW 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 GRP has no effect on the direction of SIEM OFFSHORE i.e., SIEM OFFSHORE and CREO MEDICAL go up and down completely randomly.
Pair Corralation between SIEM OFFSHORE and CREO MEDICAL
Assuming the 90 days trading horizon SIEM OFFSHORE NEW is expected to under-perform the CREO MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, SIEM OFFSHORE NEW is 2.42 times less risky than CREO MEDICAL. The stock trades about -0.08 of its potential returns per unit of risk. The CREO MEDICAL GRP is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 16.00 in CREO MEDICAL GRP on October 11, 2024 and sell it today you would earn a total of 6.00 from holding CREO MEDICAL GRP or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIEM OFFSHORE NEW vs. CREO MEDICAL GRP
Performance |
| Timeline |
| SIEM OFFSHORE NEW |
| CREO MEDICAL GRP |
SIEM OFFSHORE and CREO MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEM OFFSHORE and CREO MEDICAL
The main advantage of trading using opposite SIEM OFFSHORE and CREO MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEM OFFSHORE 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.| SIEM OFFSHORE vs. United Insurance Holdings | SIEM OFFSHORE vs. PLAYMATES TOYS | SIEM OFFSHORE vs. Erste Group Bank | SIEM OFFSHORE vs. Gaming and Leisure |
| CREO MEDICAL vs. Pentair plc | CREO MEDICAL vs. SBM OFFSHORE | CREO MEDICAL vs. WT OFFSHORE | CREO MEDICAL vs. SIEM OFFSHORE NEW |
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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