Correlation Between Creative Medical and Biocardia
Can any of the company-specific risk be diversified away by investing in both Creative Medical and Biocardia 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 Creative Medical and Biocardia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creative Medical Technology and Biocardia, you can compare the effects of market volatilities on Creative Medical and Biocardia 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 Creative Medical with a short position of Biocardia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creative Medical and Biocardia.
Diversification Opportunities for Creative Medical and Biocardia
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Creative and Biocardia is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Creative Medical Technology and Biocardia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocardia and Creative 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 Creative Medical Technology are associated (or correlated) with Biocardia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biocardia has no effect on the direction of Creative Medical i.e., Creative Medical and Biocardia go up and down completely randomly.
Pair Corralation between Creative Medical and Biocardia
Given the investment horizon of 90 days Creative Medical Technology is expected to generate 0.99 times more return on investment than Biocardia. However, Creative Medical Technology is 1.01 times less risky than Biocardia. It trades about -0.01 of its potential returns per unit of risk. Biocardia is currently generating about -0.04 per unit of risk. If you would invest 321.00 in Creative Medical Technology on September 1, 2025 and sell it today you would lose (52.00) from holding Creative Medical Technology or give up 16.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creative Medical Technology vs. Biocardia
Performance |
| Timeline |
| Creative Medical Tec |
| Biocardia |
Creative Medical and Biocardia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creative Medical and Biocardia
The main advantage of trading using opposite Creative Medical and Biocardia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creative Medical position performs unexpectedly, Biocardia 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 Biocardia will offset losses from the drop in Biocardia's long position.| Creative Medical vs. Sunlands Technology Group | Creative Medical vs. Asure Software | Creative Medical vs. Orbite Technologies | Creative Medical vs. Marti Technologies |
| Biocardia vs. Penn National Gaming | Biocardia vs. Boyd Gaming | Biocardia vs. Liberty Broadband | Biocardia vs. Yuexiu Transport Infrastructure |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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