Correlation Between Cinis Fertilizer and Asker Healthcare

Can any of the company-specific risk be diversified away by investing in both Cinis Fertilizer and Asker Healthcare 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 Cinis Fertilizer and Asker Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cinis Fertilizer AB and Asker Healthcare, you can compare the effects of market volatilities on Cinis Fertilizer and Asker Healthcare 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 Cinis Fertilizer with a short position of Asker Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinis Fertilizer and Asker Healthcare.

Diversification Opportunities for Cinis Fertilizer and Asker Healthcare

-0.27

Correlation Coefficient

Cinis Fertilizer  Asker Healthcare

Very good diversification

The 3 months correlation between Cinis and Asker is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cinis Fertilizer AB and Asker Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asker Healthcare and Cinis Fertilizer 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 Cinis Fertilizer AB are associated (or correlated) with Asker Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asker Healthcare has no effect on the direction of Cinis Fertilizer i.e., Cinis Fertilizer and Asker Healthcare go up and down completely randomly.

Pair Corralation between Cinis Fertilizer and Asker Healthcare

Assuming the 90 days trading horizon Cinis Fertilizer AB is expected to under-perform the Asker Healthcare. In addition to that, Cinis Fertilizer is 2.65 times more volatile than Asker Healthcare. It trades about -0.11 of its total potential returns per unit of risk. Asker Healthcare is currently generating about 0.02 per unit of volatility. If you would invest  10,056  in Asker Healthcare on April 25, 2025 and sell it today you would lose (30.00) from holding Asker Healthcare or give up 0.3% of portfolio value over 90 days.

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

Cinis Fertilizer AB  vs.  Asker Healthcare

Cinis Fertilizer

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cinis Fertilizer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Asker Healthcare

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Asker Healthcare are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Asker Healthcare is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cinis Fertilizer and Asker Healthcare

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

The idea behind Cinis Fertilizer AB and Asker Healthcare 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.