Correlation Between Cerus and Sanara Medtech
Can any of the company-specific risk be diversified away by investing in both Cerus and Sanara Medtech 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 Cerus and Sanara Medtech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cerus and Sanara Medtech, you can compare the effects of market volatilities on Cerus and Sanara Medtech 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 Cerus with a short position of Sanara Medtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerus and Sanara Medtech.
Diversification Opportunities for Cerus and Sanara Medtech
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cerus and Sanara is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cerus and Sanara Medtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanara Medtech and Cerus 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 Cerus are associated (or correlated) with Sanara Medtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanara Medtech has no effect on the direction of Cerus i.e., Cerus and Sanara Medtech go up and down completely randomly.
Pair Corralation between Cerus and Sanara Medtech
Given the investment horizon of 90 days Cerus is expected to generate 1.06 times more return on investment than Sanara Medtech. However, Cerus is 1.06 times more volatile than Sanara Medtech. It trades about 0.1 of its potential returns per unit of risk. Sanara Medtech is currently generating about -0.07 per unit of risk. If you would invest 160.00 in Cerus on October 7, 2025 and sell it today you would earn a total of 45.00 from holding Cerus or generate 28.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cerus vs. Sanara Medtech
Performance |
| Timeline |
| Cerus |
| Sanara Medtech |
Cerus and Sanara Medtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cerus and Sanara Medtech
The main advantage of trading using opposite Cerus and Sanara Medtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerus position performs unexpectedly, Sanara Medtech 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 Sanara Medtech will offset losses from the drop in Sanara Medtech's long position.The idea behind Cerus and Sanara Medtech 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.| Sanara Medtech vs. Stereotaxis | Sanara Medtech vs. Exagen Inc | Sanara Medtech vs. NeoGenomics | Sanara Medtech vs. LifeMD Inc |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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