Correlation Between CREF Inflation and Lombard Medical
Can any of the company-specific risk be diversified away by investing in both CREF Inflation and Lombard 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 CREF Inflation and Lombard Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CREF Inflation Linked Bond and Lombard Medical, you can compare the effects of market volatilities on CREF Inflation and Lombard 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 CREF Inflation with a short position of Lombard Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREF Inflation and Lombard Medical.
Diversification Opportunities for CREF Inflation and Lombard Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CREF and Lombard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CREF Inflation Linked Bond and Lombard Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lombard Medical and CREF Inflation 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 CREF Inflation Linked Bond are associated (or correlated) with Lombard Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lombard Medical has no effect on the direction of CREF Inflation i.e., CREF Inflation and Lombard Medical go up and down completely randomly.
Pair Corralation between CREF Inflation and Lombard Medical
If you would invest 8,876 in CREF Inflation Linked Bond on July 20, 2025 and sell it today you would earn a total of 169.00 from holding CREF Inflation Linked Bond or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CREF Inflation Linked Bond vs. Lombard Medical
Performance |
| Timeline |
| CREF Inflation Linked |
| Lombard Medical |
CREF Inflation and Lombard Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CREF Inflation and Lombard Medical
The main advantage of trading using opposite CREF Inflation and Lombard Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CREF Inflation position performs unexpectedly, Lombard 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 Lombard Medical will offset losses from the drop in Lombard Medical's long position.| CREF Inflation vs. The Coca Cola | CREF Inflation vs. Zoom Video Communications | CREF Inflation vs. Construction Partners | CREF Inflation vs. Zijin Mining Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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