Correlation Between STRATA Skin and Cytosorbents Crp
Can any of the company-specific risk be diversified away by investing in both STRATA Skin 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 STRATA Skin and Cytosorbents Crp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRATA Skin Sciences and Cytosorbents Crp, you can compare the effects of market volatilities on STRATA Skin 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 STRATA Skin with a short position of Cytosorbents Crp. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRATA Skin and Cytosorbents Crp.
Diversification Opportunities for STRATA Skin and Cytosorbents Crp
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between STRATA and Cytosorbents is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding STRATA Skin Sciences and Cytosorbents Crp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytosorbents Crp and STRATA Skin 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 STRATA Skin Sciences 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 STRATA Skin i.e., STRATA Skin and Cytosorbents Crp go up and down completely randomly.
Pair Corralation between STRATA Skin and Cytosorbents Crp
Given the investment horizon of 90 days STRATA Skin is expected to generate 10.34 times less return on investment than Cytosorbents Crp. But when comparing it to its historical volatility, STRATA Skin Sciences is 2.39 times less risky than Cytosorbents Crp. It trades about 0.04 of its potential returns per unit of risk. Cytosorbents Crp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 89.00 in Cytosorbents Crp on October 25, 2024 and sell it today you would earn a total of 11.50 from holding Cytosorbents Crp or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STRATA Skin Sciences vs. Cytosorbents Crp
Performance |
| Timeline |
| STRATA Skin Sciences |
| Cytosorbents Crp |
STRATA Skin and Cytosorbents Crp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRATA Skin and Cytosorbents Crp
The main advantage of trading using opposite STRATA Skin and Cytosorbents Crp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRATA Skin 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.| STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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