Correlation Between Creative Medical and Soligenix

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

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

Diversification Opportunities for Creative Medical and Soligenix

0.33

Correlation Coefficient

Creative Medical  Soligenix

Weak diversification

The 3 months correlation between Creative and Soligenix is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Creative Medical Technology and Soligenix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soligenix and Creative Medical 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 Medical Technology are associated (or correlated) with Soligenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soligenix has no effect on the direction of Creative Medical i.e., Creative Medical and Soligenix go up and down completely randomly.

Pair Corralation between Creative Medical and Soligenix

Given the investment horizon of 90 days Creative Medical Technology is expected to generate 0.52 times more return on investment than Soligenix. However, Creative Medical Technology is 1.93 times less risky than Soligenix. It trades about 0.02 of its potential returns per unit of risk. Soligenix is currently generating about -0.01 per unit of risk. If you would invest  364.00  in Creative Medical Technology on September 14, 2024 and sell it today you would lose (147.00) from holding Creative Medical Technology or give up 40.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Creative Medical Technology  vs.  Soligenix

Creative Medical Tec

Risk-Adjusted Performance

0 of 100

Very Weak

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

Soligenix

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Creative Medical and Soligenix

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

The idea behind Creative Medical Technology and Soligenix 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.