Correlation Between Cytosorbents Crp and Amarantus Bioscience

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

By analyzing existing cross correlation between Cytosorbents Crp and Amarantus Bioscience Holdings, you can compare the effects of market volatilities on Cytosorbents Crp and Amarantus Bioscience 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 Amarantus Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytosorbents Crp and Amarantus Bioscience.

Diversification Opportunities for Cytosorbents Crp and Amarantus Bioscience

0.18

Correlation Coefficient

Cytosorbents Crp  Amarantus Bioscience

Average diversification

The 3 months correlation between Cytosorbents and Amarantus is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cytosorbents Crp and Amarantus Bioscience Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amarantus Bioscience 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 Amarantus Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amarantus Bioscience has no effect on the direction of Cytosorbents Crp i.e., Cytosorbents Crp and Amarantus Bioscience go up and down completely randomly.

Pair Corralation between Cytosorbents Crp and Amarantus Bioscience

Given the investment horizon of 90 days Cytosorbents Crp is expected to generate 38.8 times less return on investment than Amarantus Bioscience. But when comparing it to its historical volatility, Cytosorbents Crp is 15.43 times less risky than Amarantus Bioscience. It trades about 0.05 of its potential returns per unit of risk. Amarantus Bioscience Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Amarantus Bioscience Holdings on September 30, 2024 and sell it today you would earn a total of  0.00  from holding Amarantus Bioscience Holdings or generate 0.0% return on investment over 90 days.

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

Cytosorbents Crp  vs.  Amarantus Bioscience Holdings

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 inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Amarantus Bioscience

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amarantus Bioscience Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental drivers, Amarantus Bioscience unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cytosorbents Crp and Amarantus Bioscience

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

The idea behind Cytosorbents Crp and Amarantus Bioscience Holdings 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.