Correlation Between Profound Medical and Crystal Peak

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

By analyzing existing cross correlation between Profound Medical Corp and Crystal Peak Minerals, you can compare the effects of market volatilities on Profound Medical and Crystal Peak 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 Profound Medical with a short position of Crystal Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profound Medical and Crystal Peak.

Diversification Opportunities for Profound Medical and Crystal Peak

0.0

Correlation Coefficient

Profound Medical  Crystal Peak

Pay attention - limited upside

The 3 months correlation between Profound and Crystal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Profound Medical Corp and Crystal Peak Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crystal Peak Minerals and Profound Medical 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 Profound Medical Corp are associated (or correlated) with Crystal Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crystal Peak Minerals has no effect on the direction of Profound Medical i.e., Profound Medical and Crystal Peak go up and down completely randomly.

Pair Corralation between Profound Medical and Crystal Peak

If you would invest  1,416  in Profound Medical Corp on October 5, 2024 and sell it today you would lose (273.00) from holding Profound Medical Corp or give up 19.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Profound Medical Corp  vs.  Crystal Peak Minerals

Profound Medical Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Profound Medical Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Profound Medical displayed solid returns over the last few months and may actually be approaching a breakup point.

Crystal Peak Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crystal Peak Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Crystal Peak is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Profound Medical and Crystal Peak

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

The idea behind Profound Medical Corp and Crystal Peak Minerals 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.