Correlation Between Mednax and Cytosorbents Crp

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

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

Diversification Opportunities for Mednax and Cytosorbents Crp

0.44

Correlation Coefficient

Mednax  Cytosorbents Crp

Very weak diversification

The 3 months correlation between Mednax and Cytosorbents is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mednax Inc and Cytosorbents Crp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytosorbents Crp and Mednax 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 Mednax Inc are associated (or correlated) with Cytosorbents Crp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytosorbents Crp has no effect on the direction of Mednax i.e., Mednax and Cytosorbents Crp go up and down completely randomly.

Pair Corralation between Mednax and Cytosorbents Crp

Allowing for the 90-day total investment horizon Mednax is expected to generate 1.59 times less return on investment than Cytosorbents Crp. But when comparing it to its historical volatility, Mednax Inc is 1.28 times less risky than Cytosorbents Crp. It trades about 0.05 of its potential returns per unit of risk. Cytosorbents Crp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  90.00  in Cytosorbents Crp on December 30, 2024 and sell it today you would earn a total of  10.00  from holding Cytosorbents Crp or generate 11.11% return on investment over 90 days.

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

Mednax Inc  vs.  Cytosorbents Crp

Mednax Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mednax Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Mednax may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cytosorbents Crp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cytosorbents Crp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Cytosorbents Crp displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mednax and Cytosorbents Crp

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

The idea behind Mednax Inc and Cytosorbents Crp 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.