Correlation Between Creative Edge and Medicure

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

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

Diversification Opportunities for Creative Edge and Medicure

0.0

Correlation Coefficient

Creative Edge  Medicure

Pay attention - limited upside

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

Pair Corralation between Creative Edge and Medicure

If you would invest  0.00  in Creative Edge Nutrit on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Creative Edge Nutrit or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Creative Edge Nutrit  vs.  Medicure

Creative Edge Nutrit

Risk-Adjusted Performance

0 of 100

OK

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

Medicure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Medicure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's forward-looking indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Creative Edge and Medicure

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

The idea behind Creative Edge Nutrit and Medicure 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.