Correlation Between Clinical Laserthermia and Enad Global

Can any of the company-specific risk be diversified away by investing in both Clinical Laserthermia and Enad Global 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 Enad Global 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 Enad Global 7, you can compare the effects of market volatilities on Clinical Laserthermia and Enad Global 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 Enad Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clinical Laserthermia and Enad Global.

Diversification Opportunities for Clinical Laserthermia and Enad Global

-0.26

Correlation Coefficient

Clinical Laserthermia  Enad Global

Very good diversification

The 3 months correlation between Clinical and Enad is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Clinical Laserthermia Systems and Enad Global 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enad Global 7 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 Enad Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enad Global 7 has no effect on the direction of Clinical Laserthermia i.e., Clinical Laserthermia and Enad Global go up and down completely randomly.

Pair Corralation between Clinical Laserthermia and Enad Global

Assuming the 90 days trading horizon Clinical Laserthermia is expected to generate 9.3 times less return on investment than Enad Global. In addition to that, Clinical Laserthermia is 2.06 times more volatile than Enad Global 7. It trades about 0.02 of its total potential returns per unit of risk. Enad Global 7 is currently generating about 0.33 per unit of volatility. If you would invest  1,281  in Enad Global 7 on September 21, 2024 and sell it today you would earn a total of  292.00  from holding Enad Global 7 or generate 22.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Clinical Laserthermia Systems  vs.  Enad Global 7

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.

Enad Global 7

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Enad Global 7 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Enad Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Clinical Laserthermia and Enad Global

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

The idea behind Clinical Laserthermia Systems and Enad Global 7 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.