Correlation Between ABIOMED and SohuCom
Can any of the company-specific risk be diversified away by investing in both ABIOMED and SohuCom 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 ABIOMED and SohuCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABIOMED and SohuCom, you can compare the effects of market volatilities on ABIOMED and SohuCom 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 ABIOMED with a short position of SohuCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABIOMED and SohuCom.
Diversification Opportunities for ABIOMED and SohuCom
Pay attention - limited upside
The 3 months correlation between ABIOMED and SohuCom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ABIOMED and SohuCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SohuCom and ABIOMED 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 ABIOMED are associated (or correlated) with SohuCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SohuCom has no effect on the direction of ABIOMED i.e., ABIOMED and SohuCom go up and down completely randomly.
Pair Corralation between ABIOMED and SohuCom
If you would invest 0.00 in ABIOMED on November 4, 2024 and sell it today you would earn a total of 0.00 from holding ABIOMED or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
ABIOMED vs. SohuCom
Performance |
| Timeline |
| ABIOMED |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SohuCom |
ABIOMED and SohuCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABIOMED and SohuCom
The main advantage of trading using opposite ABIOMED and SohuCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABIOMED position performs unexpectedly, SohuCom 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 SohuCom will offset losses from the drop in SohuCom's long position.| ABIOMED vs. Seadrill Limited | ABIOMED vs. Emerson Radio | ABIOMED vs. Vantage Drilling International | ABIOMED vs. Tenaris SA ADR |
| SohuCom vs. Snail, Class A | SohuCom vs. Playstudios | SohuCom vs. Playtika Holding Corp | SohuCom vs. Doubledown Interactive Co |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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