Correlation Between BioLife Solutions and Cytosorbents Crp

Can any of the company-specific risk be diversified away by investing in both BioLife Solutions and Cytosorbents Crp 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 BioLife Solutions and Cytosorbents Crp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BioLife Solutions and Cytosorbents Crp, you can compare the effects of market volatilities on BioLife Solutions and Cytosorbents Crp 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 BioLife Solutions with a short position of Cytosorbents Crp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLife Solutions and Cytosorbents Crp.

Diversification Opportunities for BioLife Solutions and Cytosorbents Crp

-0.07

Correlation Coefficient

BioLife Solutions  Cytosorbents Crp

Good diversification

The 3 months correlation between BioLife and Cytosorbents is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding BioLife Solutions and Cytosorbents Crp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytosorbents Crp and BioLife Solutions 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 BioLife Solutions are associated (or correlated) with Cytosorbents Crp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytosorbents Crp has no effect on the direction of BioLife Solutions i.e., BioLife Solutions and Cytosorbents Crp go up and down completely randomly.

Pair Corralation between BioLife Solutions and Cytosorbents Crp

Given the investment horizon of 90 days BioLife Solutions is expected to generate 12.13 times less return on investment than Cytosorbents Crp. But when comparing it to its historical volatility, BioLife Solutions is 1.8 times less risky than Cytosorbents Crp. It trades about 0.01 of its potential returns per unit of risk. Cytosorbents Crp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  87.00  in Cytosorbents Crp on May 13, 2025 and sell it today you would earn a total of  21.50  from holding Cytosorbents Crp or generate 24.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BioLife Solutions  vs.  Cytosorbents Crp

BioLife Solutions

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in BioLife Solutions are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, BioLife Solutions is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Cytosorbents Crp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cytosorbents Crp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Cytosorbents Crp displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BioLife Solutions and Cytosorbents Crp

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

The idea behind BioLife Solutions and Cytosorbents Crp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.