Correlation Between Venus Concept and Cytosorbents Crp

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

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

Diversification Opportunities for Venus Concept and Cytosorbents Crp

-0.22

Correlation Coefficient

Venus Concept  Cytosorbents Crp

Very good diversification

The 3 months correlation between Venus and Cytosorbents is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Venus Concept and Cytosorbents Crp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytosorbents Crp and Venus Concept 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 Venus Concept 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 Venus Concept i.e., Venus Concept and Cytosorbents Crp go up and down completely randomly.

Pair Corralation between Venus Concept and Cytosorbents Crp

Given the investment horizon of 90 days Venus Concept is expected to generate 1.7 times less return on investment than Cytosorbents Crp. In addition to that, Venus Concept is 2.75 times more volatile than Cytosorbents Crp. It trades about 0.01 of its total potential returns per unit of risk. Cytosorbents Crp is currently generating about 0.06 per unit of volatility. 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Venus Concept  vs.  Cytosorbents Crp

Venus Concept

Risk-Adjusted Performance

Very Weak

Over the last 90 days Venus Concept has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very unfluctuating basic indicators, Venus Concept 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 Venus Concept and Cytosorbents Crp

The main advantage of trading using opposite Venus Concept and Cytosorbents Crp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Venus Concept 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 Venus Concept 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.