Correlation Between Hyrican Informationssyst and CryoLife

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

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

Diversification Opportunities for Hyrican Informationssyst and CryoLife

0.05

Correlation Coefficient

Hyrican Informationssyst  CryoLife

Significant diversification

The 3 months correlation between Hyrican and CryoLife is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak and CryoLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CryoLife and Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft are associated (or correlated) with CryoLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CryoLife has no effect on the direction of Hyrican Informationssyst i.e., Hyrican Informationssyst and CryoLife go up and down completely randomly.

Pair Corralation between Hyrican Informationssyst and CryoLife

Assuming the 90 days horizon Hyrican Informationssysteme Aktiengesellschaft is expected to generate 0.15 times more return on investment than CryoLife. However, Hyrican Informationssysteme Aktiengesellschaft is 6.48 times less risky than CryoLife. It trades about -0.1 of its potential returns per unit of risk. CryoLife is currently generating about -0.16 per unit of risk. If you would invest  530.00  in Hyrican Informationssysteme Aktiengesellschaft on December 22, 2024 and sell it today you would lose (10.00) from holding Hyrican Informationssysteme Aktiengesellschaft or give up 1.89% of portfolio value over 90 days.

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

Hyrican Informationssysteme Ak  vs.  CryoLife

Hyrican Informationssyst

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hyrican Informationssysteme Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Hyrican Informationssyst is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

CryoLife

Risk-Adjusted Performance

Very Weak

Over the last 90 days CryoLife has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Hyrican Informationssyst and CryoLife

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

The idea behind Hyrican Informationssysteme Aktiengesellschaft and CryoLife 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.