Correlation Between Universal Display and Surgical Science
Can any of the company-specific risk be diversified away by investing in both Universal Display and Surgical Science 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 Universal Display and Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Display Corp and Surgical Science Sweden, you can compare the effects of market volatilities on Universal Display and Surgical Science 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 Universal Display with a short position of Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Display and Surgical Science.
Diversification Opportunities for Universal Display and Surgical Science
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Universal and Surgical is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Universal Display Corp and Surgical Science Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgical Science Sweden and Universal Display 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 Universal Display Corp are associated (or correlated) with Surgical Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgical Science Sweden has no effect on the direction of Universal Display i.e., Universal Display and Surgical Science go up and down completely randomly.
Pair Corralation between Universal Display and Surgical Science
Assuming the 90 days trading horizon Universal Display Corp is expected to generate 0.89 times more return on investment than Surgical Science. However, Universal Display Corp is 1.12 times less risky than Surgical Science. It trades about 0.02 of its potential returns per unit of risk. Surgical Science Sweden is currently generating about -0.02 per unit of risk. If you would invest 15,067 in Universal Display Corp on September 12, 2024 and sell it today you would earn a total of 666.00 from holding Universal Display Corp or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.77% |
| Values | Daily Returns |
Universal Display Corp vs. Surgical Science Sweden
Performance |
| Timeline |
| Universal Display Corp |
| Surgical Science Sweden |
Universal Display and Surgical Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Display and Surgical Science
The main advantage of trading using opposite Universal Display and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Display position performs unexpectedly, Surgical Science 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 Surgical Science will offset losses from the drop in Surgical Science's long position.| Universal Display vs. Hong Kong Land | Universal Display vs. Neometals | Universal Display vs. Coor Service Management | Universal Display vs. Fidelity Sustainable USD |
| Surgical Science vs. Datalogic | Surgical Science vs. Universal Display Corp | Surgical Science vs. Grieg Seafood | Surgical Science vs. Teradata Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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