Correlation Between CryoLife and SCANDMEDICAL SOLDK-040

Can any of the company-specific risk be diversified away by investing in both CryoLife and SCANDMEDICAL SOLDK-040 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 CryoLife and SCANDMEDICAL SOLDK-040 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CryoLife and SCANDMEDICAL SOLDK 040, you can compare the effects of market volatilities on CryoLife and SCANDMEDICAL SOLDK-040 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 CryoLife with a short position of SCANDMEDICAL SOLDK-040. Check out your portfolio center. Please also check ongoing floating volatility patterns of CryoLife and SCANDMEDICAL SOLDK-040.

Diversification Opportunities for CryoLife and SCANDMEDICAL SOLDK-040

-0.42

Correlation Coefficient

CryoLife  SCANDMEDICAL SOLDK-040

Very good diversification

The 3 months correlation between CryoLife and SCANDMEDICAL is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CryoLife and SCANDMEDICAL SOLDK 040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDMEDICAL SOLDK 040 and CryoLife 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 CryoLife are associated (or correlated) with SCANDMEDICAL SOLDK-040. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDMEDICAL SOLDK 040 has no effect on the direction of CryoLife i.e., CryoLife and SCANDMEDICAL SOLDK-040 go up and down completely randomly.

Pair Corralation between CryoLife and SCANDMEDICAL SOLDK-040

Assuming the 90 days horizon CryoLife is expected to generate 0.32 times more return on investment than SCANDMEDICAL SOLDK-040. However, CryoLife is 3.09 times less risky than SCANDMEDICAL SOLDK-040. It trades about 0.09 of its potential returns per unit of risk. SCANDMEDICAL SOLDK 040 is currently generating about 0.02 per unit of risk. If you would invest  1,190  in CryoLife on October 23, 2024 and sell it today you would earn a total of  1,775  from holding CryoLife or generate 149.16% return on investment over 90 days.

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

CryoLife  vs.  SCANDMEDICAL SOLDK 040

CryoLife

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CryoLife are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CryoLife reported solid returns over the last few months and may actually be approaching a breakup point.

SCANDMEDICAL SOLDK 040

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SCANDMEDICAL SOLDK 040 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic 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 CryoLife and SCANDMEDICAL SOLDK-040

The main advantage of trading using opposite CryoLife and SCANDMEDICAL SOLDK-040 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CryoLife position performs unexpectedly, SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 will offset losses from the drop in SCANDMEDICAL SOLDK-040's long position.

The idea behind CryoLife and SCANDMEDICAL SOLDK 040 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.