Correlation Between GERATHERM MEDICAL and CSSC Offshore
Can any of the company-specific risk be diversified away by investing in both GERATHERM MEDICAL and CSSC Offshore 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 GERATHERM MEDICAL and CSSC Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GERATHERM MEDICAL and CSSC Offshore Marine, you can compare the effects of market volatilities on GERATHERM MEDICAL and CSSC Offshore 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 GERATHERM MEDICAL with a short position of CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of GERATHERM MEDICAL and CSSC Offshore.
Diversification Opportunities for GERATHERM MEDICAL and CSSC Offshore
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GERATHERM and CSSC is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding GERATHERM MEDICAL and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine and GERATHERM MEDICAL 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 GERATHERM MEDICAL are associated (or correlated) with CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of GERATHERM MEDICAL i.e., GERATHERM MEDICAL and CSSC Offshore go up and down completely randomly.
Pair Corralation between GERATHERM MEDICAL and CSSC Offshore
Assuming the 90 days trading horizon GERATHERM MEDICAL is expected to generate 24.71 times more return on investment than CSSC Offshore. However, GERATHERM MEDICAL is 24.71 times more volatile than CSSC Offshore Marine. It trades about 0.13 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.13 per unit of risk. If you would invest 269.00 in GERATHERM MEDICAL on April 21, 2025 and sell it today you would earn a total of 59.00 from holding GERATHERM MEDICAL or generate 21.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
GERATHERM MEDICAL vs. CSSC Offshore Marine
Performance |
Timeline |
GERATHERM MEDICAL |
CSSC Offshore Marine |
GERATHERM MEDICAL and CSSC Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GERATHERM MEDICAL and CSSC Offshore
The main advantage of trading using opposite GERATHERM MEDICAL and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GERATHERM MEDICAL position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.GERATHERM MEDICAL vs. PPHE HOTEL GROUP | GERATHERM MEDICAL vs. Scandic Hotels Group | GERATHERM MEDICAL vs. RCS MediaGroup SpA | GERATHERM MEDICAL vs. Dave Busters Entertainment |
CSSC Offshore vs. CVR Medical Corp | CSSC Offshore vs. JD SPORTS FASH | CSSC Offshore vs. GERATHERM MEDICAL | CSSC Offshore vs. Columbia Sportswear |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Global Correlations Find global opportunities by holding instruments from different markets |