Correlation Between Cytosorbents Crp and Tela Bio

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

By analyzing existing cross correlation between Cytosorbents Crp and Tela Bio, you can compare the effects of market volatilities on Cytosorbents Crp and Tela Bio 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 Cytosorbents Crp with a short position of Tela Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytosorbents Crp and Tela Bio.

Diversification Opportunities for Cytosorbents Crp and Tela Bio

-0.7

Correlation Coefficient

Cytosorbents Crp  Tela Bio

Excellent diversification

The 3 months correlation between Cytosorbents and Tela is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cytosorbents Crp and Tela Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tela Bio and Cytosorbents Crp 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 Cytosorbents Crp are associated (or correlated) with Tela Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tela Bio has no effect on the direction of Cytosorbents Crp i.e., Cytosorbents Crp and Tela Bio go up and down completely randomly.

Pair Corralation between Cytosorbents Crp and Tela Bio

Given the investment horizon of 90 days Cytosorbents Crp is expected to under-perform the Tela Bio. In addition to that, Cytosorbents Crp is 1.71 times more volatile than Tela Bio. It trades about -0.02 of its total potential returns per unit of risk. Tela Bio is currently generating about 0.08 per unit of volatility. If you would invest  260.00  in Tela Bio on September 12, 2024 and sell it today you would earn a total of  39.00  from holding Tela Bio or generate 15.0% return on investment over 90 days.

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

Cytosorbents Crp  vs.  Tela Bio

Cytosorbents Crp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cytosorbents Crp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Tela Bio

Risk-Adjusted Performance

6 of 100

Modest

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

Pair Trading with Cytosorbents Crp and Tela Bio

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

The idea behind Cytosorbents Crp and Tela Bio 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.