Correlation Between Cytogen and Ewon Comfortech

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

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

Diversification Opportunities for Cytogen and Ewon Comfortech

-0.39

Correlation Coefficient

Cytogen  Ewon Comfortech

Very good diversification

The 3 months correlation between Cytogen and Ewon is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cytogen and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech and Cytogen 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 Cytogen are associated (or correlated) with Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of Cytogen i.e., Cytogen and Ewon Comfortech go up and down completely randomly.

Pair Corralation between Cytogen and Ewon Comfortech

Assuming the 90 days trading horizon Cytogen is expected to under-perform the Ewon Comfortech. But the stock apears to be less risky and, when comparing its historical volatility, Cytogen is 1.33 times less risky than Ewon Comfortech. The stock trades about -0.16 of its potential returns per unit of risk. The Ewon Comfortech Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  103,000  in Ewon Comfortech Co on December 23, 2024 and sell it today you would earn a total of  29,100  from holding Ewon Comfortech Co or generate 28.25% return on investment over 90 days.

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

Cytogen  vs.  Ewon Comfortech Co

Cytogen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cytogen has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Ewon Comfortech

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ewon Comfortech Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ewon Comfortech sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cytogen and Ewon Comfortech

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

The idea behind Cytogen and Ewon Comfortech Co 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.