Correlation Between Calumet Specialty and Episurf Medical

Can any of the company-specific risk be diversified away by investing in both Calumet Specialty and Episurf 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 Calumet Specialty and Episurf Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calumet Specialty Products and Episurf Medical AB, you can compare the effects of market volatilities on Calumet Specialty and Episurf 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 Calumet Specialty with a short position of Episurf Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calumet Specialty and Episurf Medical.

Diversification Opportunities for Calumet Specialty and Episurf Medical

0.0

Correlation Coefficient

Calumet Specialty  Episurf Medical

Pay attention - limited upside

The 3 months correlation between Calumet and Episurf is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calumet Specialty Products and Episurf Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Episurf Medical AB and Calumet Specialty 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 Calumet Specialty Products are associated (or correlated) with Episurf Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Episurf Medical AB has no effect on the direction of Calumet Specialty i.e., Calumet Specialty and Episurf Medical go up and down completely randomly.

Pair Corralation between Calumet Specialty and Episurf Medical

If you would invest (100.00) in Episurf Medical AB on January 26, 2024 and sell it today you would earn a total of  100.00  from holding Episurf Medical AB or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Calumet Specialty Products  vs.  Episurf Medical AB

Calumet Specialty

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Calumet Specialty Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Calumet Specialty is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Episurf Medical AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Episurf Medical AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Episurf Medical is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Calumet Specialty and Episurf Medical

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

The idea behind Calumet Specialty Products and Episurf Medical AB 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.