Correlation Between STORAGEVAULT CANADA and GERATHERM MEDICAL

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

By analyzing existing cross correlation between STORAGEVAULT CANADA INC and GERATHERM MEDICAL, you can compare the effects of market volatilities on STORAGEVAULT CANADA and GERATHERM 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 STORAGEVAULT CANADA with a short position of GERATHERM MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of STORAGEVAULT CANADA and GERATHERM MEDICAL.

Diversification Opportunities for STORAGEVAULT CANADA and GERATHERM MEDICAL

0.67

Correlation Coefficient

STORAGEVAULT CANADA  GERATHERM MEDICAL

Poor diversification

The 3 months correlation between STORAGEVAULT and GERATHERM is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding STORAGEVAULT CANADA INC and GERATHERM MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GERATHERM MEDICAL and STORAGEVAULT CANADA 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 STORAGEVAULT CANADA INC are associated (or correlated) with GERATHERM MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GERATHERM MEDICAL has no effect on the direction of STORAGEVAULT CANADA i.e., STORAGEVAULT CANADA and GERATHERM MEDICAL go up and down completely randomly.

Pair Corralation between STORAGEVAULT CANADA and GERATHERM MEDICAL

Assuming the 90 days horizon STORAGEVAULT CANADA is expected to generate 1.7 times less return on investment than GERATHERM MEDICAL. But when comparing it to its historical volatility, STORAGEVAULT CANADA INC is 1.24 times less risky than GERATHERM MEDICAL. It trades about 0.09 of its potential returns per unit of risk. GERATHERM MEDICAL is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  275.00  in GERATHERM MEDICAL on April 23, 2025 and sell it today you would earn a total of  56.00  from holding GERATHERM MEDICAL or generate 20.36% return on investment over 90 days.

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

STORAGEVAULT CANADA INC  vs.  GERATHERM MEDICAL

STORAGEVAULT CANADA INC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in STORAGEVAULT CANADA INC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, STORAGEVAULT CANADA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

GERATHERM MEDICAL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GERATHERM MEDICAL are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, GERATHERM MEDICAL unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with STORAGEVAULT CANADA and GERATHERM MEDICAL

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

The idea behind STORAGEVAULT CANADA INC and GERATHERM MEDICAL 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.