Correlation Between Thermo Fisher and Check-Cap
Can any of the company-specific risk be diversified away by investing in both Thermo Fisher and Check-Cap 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 Thermo Fisher and Check-Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermo Fisher Scientific and Check Cap, you can compare the effects of market volatilities on Thermo Fisher and Check-Cap 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 Thermo Fisher with a short position of Check-Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermo Fisher and Check-Cap.
Diversification Opportunities for Thermo Fisher and Check-Cap
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Thermo and Check-Cap is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Thermo Fisher Scientific and Check Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Cap and Thermo Fisher 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 Thermo Fisher Scientific are associated (or correlated) with Check-Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Cap has no effect on the direction of Thermo Fisher i.e., Thermo Fisher and Check-Cap go up and down completely randomly.
Pair Corralation between Thermo Fisher and Check-Cap
Assuming the 90 days horizon Thermo Fisher Scientific is expected to generate 0.37 times more return on investment than Check-Cap. However, Thermo Fisher Scientific is 2.7 times less risky than Check-Cap. It trades about -0.01 of its potential returns per unit of risk. Check Cap is currently generating about -0.18 per unit of risk. If you would invest 52,095 in Thermo Fisher Scientific on September 1, 2024 and sell it today you would lose (1,825) from holding Thermo Fisher Scientific or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermo Fisher Scientific vs. Check Cap
Performance |
| Timeline |
| Thermo Fisher Scientific |
| Check Cap |
Thermo Fisher and Check-Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermo Fisher and Check-Cap
The main advantage of trading using opposite Thermo Fisher and Check-Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermo Fisher position performs unexpectedly, Check-Cap 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 Check-Cap will offset losses from the drop in Check-Cap's long position.| Thermo Fisher vs. MagnaChip Semiconductor Corp | Thermo Fisher vs. TOREX SEMICONDUCTOR LTD | Thermo Fisher vs. X FAB Silicon Foundries | Thermo Fisher vs. Wayside Technology Group |
| Check-Cap vs. Cardinal Health | Check-Cap vs. Sabra Health Care | Check-Cap vs. Natural Health Trends | Check-Cap vs. PKSHA TECHNOLOGY INC |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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