Correlation Between Cryoport and Hub

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

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

Diversification Opportunities for Cryoport and Hub

0.01

Correlation Coefficient

Cryoport  Hub

Significant diversification

The 3 months correlation between Cryoport and Hub is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cryoport and Hub Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub Group and Cryoport 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 Cryoport are associated (or correlated) with Hub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub Group has no effect on the direction of Cryoport i.e., Cryoport and Hub go up and down completely randomly.

Pair Corralation between Cryoport and Hub

Given the investment horizon of 90 days Cryoport is expected to generate 2.88 times more return on investment than Hub. However, Cryoport is 2.88 times more volatile than Hub Group. It trades about 0.12 of its potential returns per unit of risk. Hub Group is currently generating about -0.52 per unit of risk. If you would invest  718.00  in Cryoport on September 27, 2024 and sell it today you would earn a total of  69.00  from holding Cryoport or generate 9.61% return on investment over 90 days.

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

Cryoport  vs.  Hub Group

Cryoport

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cryoport are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Cryoport is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Hub Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hub Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Hub is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cryoport and Hub

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

The idea behind Cryoport and Hub Group 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.

Check out your portfolio center.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.