Correlation Between Xvivo Perfusion and Clinical Laserthermia
Can any of the company-specific risk be diversified away by investing in both Xvivo Perfusion and Clinical Laserthermia 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 Xvivo Perfusion and Clinical Laserthermia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xvivo Perfusion AB and Clinical Laserthermia Systems, you can compare the effects of market volatilities on Xvivo Perfusion and Clinical Laserthermia 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 Xvivo Perfusion with a short position of Clinical Laserthermia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xvivo Perfusion and Clinical Laserthermia.
Diversification Opportunities for Xvivo Perfusion and Clinical Laserthermia
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xvivo and Clinical is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xvivo Perfusion AB and Clinical Laserthermia Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clinical Laserthermia and Xvivo Perfusion 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 Xvivo Perfusion AB are associated (or correlated) with Clinical Laserthermia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clinical Laserthermia has no effect on the direction of Xvivo Perfusion i.e., Xvivo Perfusion and Clinical Laserthermia go up and down completely randomly.
Pair Corralation between Xvivo Perfusion and Clinical Laserthermia
Assuming the 90 days trading horizon Xvivo Perfusion AB is expected to under-perform the Clinical Laserthermia. But the stock apears to be less risky and, when comparing its historical volatility, Xvivo Perfusion AB is 3.05 times less risky than Clinical Laserthermia. The stock trades about -0.13 of its potential returns per unit of risk. The Clinical Laserthermia Systems is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 514.00 in Clinical Laserthermia Systems on August 26, 2024 and sell it today you would lose (64.00) from holding Clinical Laserthermia Systems or give up 12.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xvivo Perfusion AB vs. Clinical Laserthermia Systems
Performance |
| Timeline |
| Xvivo Perfusion AB |
| Clinical Laserthermia |
Xvivo Perfusion and Clinical Laserthermia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xvivo Perfusion and Clinical Laserthermia
The main advantage of trading using opposite Xvivo Perfusion and Clinical Laserthermia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xvivo Perfusion position performs unexpectedly, Clinical Laserthermia 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 Clinical Laserthermia will offset losses from the drop in Clinical Laserthermia's long position.The idea behind Xvivo Perfusion AB and Clinical Laserthermia Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Clinical Laserthermia vs. Xvivo Perfusion AB | Clinical Laserthermia vs. SpectraCure AB | Clinical Laserthermia vs. Senzime AB |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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