Correlation Between Clinical Laserthermia and High Coast

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

By analyzing existing cross correlation between Clinical Laserthermia Systems and High Coast Distillery, you can compare the effects of market volatilities on Clinical Laserthermia and High Coast 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 Clinical Laserthermia with a short position of High Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clinical Laserthermia and High Coast.

Diversification Opportunities for Clinical Laserthermia and High Coast

-0.47

Correlation Coefficient

Clinical Laserthermia  High Coast

Very good diversification

The 3 months correlation between Clinical and High is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Clinical Laserthermia Systems and High Coast Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Coast Distillery and Clinical Laserthermia 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 Clinical Laserthermia Systems are associated (or correlated) with High Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Coast Distillery has no effect on the direction of Clinical Laserthermia i.e., Clinical Laserthermia and High Coast go up and down completely randomly.

Pair Corralation between Clinical Laserthermia and High Coast

Assuming the 90 days trading horizon Clinical Laserthermia Systems is expected to under-perform the High Coast. In addition to that, Clinical Laserthermia is 1.79 times more volatile than High Coast Distillery. It trades about -0.05 of its total potential returns per unit of risk. High Coast Distillery is currently generating about 0.09 per unit of volatility. If you would invest  3,960  in High Coast Distillery on September 14, 2024 and sell it today you would earn a total of  620.00  from holding High Coast Distillery or generate 15.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Clinical Laserthermia Systems  vs.  High Coast Distillery

Clinical Laserthermia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clinical Laserthermia Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

High Coast Distillery

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in High Coast Distillery are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, High Coast sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Clinical Laserthermia and High Coast

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

The idea behind Clinical Laserthermia Systems and High Coast Distillery 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.