Correlation Between Varex Imaging and Cytosorbents Crp

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

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

Diversification Opportunities for Varex Imaging and Cytosorbents Crp

-0.38

Correlation Coefficient

Varex Imaging  Cytosorbents Crp

Very good diversification

The 3 months correlation between Varex and Cytosorbents is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp and Cytosorbents Crp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytosorbents Crp and Varex Imaging 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 Varex Imaging Corp 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 Varex Imaging i.e., Varex Imaging and Cytosorbents Crp go up and down completely randomly.

Pair Corralation between Varex Imaging and Cytosorbents Crp

Given the investment horizon of 90 days Varex Imaging Corp is expected to under-perform the Cytosorbents Crp. But the stock apears to be less risky and, when comparing its historical volatility, Varex Imaging Corp is 1.43 times less risky than Cytosorbents Crp. The stock trades about -0.09 of its potential returns per unit of risk. The 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Varex Imaging Corp  vs.  Cytosorbents Crp

Varex Imaging Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Varex Imaging Corp 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 and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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 Varex Imaging and Cytosorbents Crp

The main advantage of trading using opposite Varex Imaging and Cytosorbents Crp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varex Imaging 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 Varex Imaging Corp 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.