Correlation Between Cerus and Ssur Hf

Can any of the company-specific risk be diversified away by investing in both Cerus and Ssur Hf 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 Cerus and Ssur Hf into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cerus and ssur hf, you can compare the effects of market volatilities on Cerus and Ssur Hf 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 Cerus with a short position of Ssur Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerus and Ssur Hf.

Diversification Opportunities for Cerus and Ssur Hf

0.0

Correlation Coefficient

Cerus  Ssur Hf

Pay attention - limited upside

The 3 months correlation between Cerus and Ssur is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cerus and ssur hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ssur hf and Cerus 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 Cerus are associated (or correlated) with Ssur Hf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ssur hf has no effect on the direction of Cerus i.e., Cerus and Ssur Hf go up and down completely randomly.

Pair Corralation between Cerus and Ssur Hf

If you would invest  405.00  in ssur hf on September 30, 2024 and sell it today you would earn a total of  0.00  from holding ssur hf or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.97%
Values	Daily Returns

Cerus  vs.  ssur hf

Cerus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cerus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Cerus is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

ssur hf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ssur hf has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Ssur Hf is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cerus and Ssur Hf

The main advantage of trading using opposite Cerus and Ssur Hf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerus position performs unexpectedly, Ssur Hf 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 Ssur Hf will offset losses from the drop in Ssur Hf's long position.

The idea behind Cerus and ssur hf 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..