Correlation Between Securitas and Chordate Medical

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Securitas and Chordate Medical 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 Securitas and Chordate Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Securitas AB and Chordate Medical Holding, you can compare the effects of market volatilities on Securitas and Chordate Medical 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 Securitas with a short position of Chordate Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Securitas and Chordate Medical.

Diversification Opportunities for Securitas and Chordate Medical

-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Securitas and Chordate is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Securitas AB and Chordate Medical Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chordate Medical Holding and Securitas 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 Securitas AB are associated (or correlated) with Chordate Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chordate Medical Holding has no effect on the direction of Securitas i.e., Securitas and Chordate Medical go up and down completely randomly.

Pair Corralation between Securitas and Chordate Medical

Assuming the 90 days trading horizon Securitas AB is expected to generate 0.27 times more return on investment than Chordate Medical. However, Securitas AB is 3.68 times less risky than Chordate Medical. It trades about 0.07 of its potential returns per unit of risk. Chordate Medical Holding is currently generating about -0.14 per unit of risk. If you would invest  12,910  in Securitas AB on September 23, 2024 and sell it today you would earn a total of  840.00  from holding Securitas AB or generate 6.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Securitas AB  vs.  Chordate Medical Holding

 Performance 
       Timeline  
Securitas AB 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Securitas AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental indicators, Securitas may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Chordate Medical Holding 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Chordate Medical Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Securitas and Chordate Medical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Securitas and Chordate Medical

The main advantage of trading using opposite Securitas and Chordate Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Securitas position performs unexpectedly, Chordate Medical 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 Chordate Medical will offset losses from the drop in Chordate Medical's long position.
The idea behind Securitas AB and Chordate Medical Holding 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Equity Valuation
Check real value of public entities based on technical and fundamental data
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas