Correlation Between Senseonics Holdings and Cytosorbents Crp
Can any of the company-specific risk be diversified away by investing in both Senseonics Holdings and Cytosorbents Crp 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 Senseonics Holdings and Cytosorbents Crp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senseonics Holdings and Cytosorbents Crp, you can compare the effects of market volatilities on Senseonics Holdings and Cytosorbents Crp 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 Senseonics Holdings with a short position of Cytosorbents Crp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senseonics Holdings and Cytosorbents Crp.
Diversification Opportunities for Senseonics Holdings and Cytosorbents Crp
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Senseonics and Cytosorbents is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Senseonics Holdings and Cytosorbents Crp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytosorbents Crp and Senseonics Holdings 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 Senseonics Holdings are associated (or correlated) with Cytosorbents Crp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytosorbents Crp has no effect on the direction of Senseonics Holdings i.e., Senseonics Holdings and Cytosorbents Crp go up and down completely randomly.
Pair Corralation between Senseonics Holdings and Cytosorbents Crp
Given the investment horizon of 90 days Senseonics Holdings is expected to under-perform the Cytosorbents Crp. But the stock apears to be less risky and, when comparing its historical volatility, Senseonics Holdings is 1.83 times less risky than Cytosorbents Crp. The stock trades about -0.07 of its potential returns per unit of risk. The Cytosorbents Crp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 101.00 in Cytosorbents Crp on September 1, 2024 and sell it today you would lose (4.00) from holding Cytosorbents Crp or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senseonics Holdings vs. Cytosorbents Crp
Performance |
| Timeline |
| Senseonics Holdings |
| Cytosorbents Crp |
Senseonics Holdings and Cytosorbents Crp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senseonics Holdings and Cytosorbents Crp
The main advantage of trading using opposite Senseonics Holdings and Cytosorbents Crp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senseonics Holdings position performs unexpectedly, Cytosorbents Crp 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 Cytosorbents Crp will offset losses from the drop in Cytosorbents Crp's long position.| Senseonics Holdings vs. Profound Medical Corp | Senseonics Holdings vs. Si Bone | Senseonics Holdings vs. Nevro Corp | Senseonics Holdings vs. Paragon 28 |
| Cytosorbents Crp vs. LivaNova PLC | Cytosorbents Crp vs. Electromed | Cytosorbents Crp vs. Orthopediatrics Corp | Cytosorbents Crp vs. SurModics |
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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