Correlation Between Aurora Spine and SurModics
Can any of the company-specific risk be diversified away by investing in both Aurora Spine and SurModics 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 Aurora Spine and SurModics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Spine and SurModics, you can compare the effects of market volatilities on Aurora Spine and SurModics 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 Aurora Spine with a short position of SurModics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Spine and SurModics.
Diversification Opportunities for Aurora Spine and SurModics
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aurora and SurModics is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Spine and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Aurora Spine 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 Aurora Spine are associated (or correlated) with SurModics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SurModics has no effect on the direction of Aurora Spine i.e., Aurora Spine and SurModics go up and down completely randomly.
Pair Corralation between Aurora Spine and SurModics
Assuming the 90 days horizon Aurora Spine is expected to under-perform the SurModics. In addition to that, Aurora Spine is 4.05 times more volatile than SurModics. It trades about -0.09 of its total potential returns per unit of risk. SurModics is currently generating about 0.35 per unit of volatility. If you would invest 3,750 in SurModics on August 31, 2024 and sell it today you would earn a total of 204.00 from holding SurModics or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Spine vs. SurModics
Performance |
| Timeline |
| Aurora Spine |
| SurModics |
Aurora Spine and SurModics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Spine and SurModics
The main advantage of trading using opposite Aurora Spine and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Spine position performs unexpectedly, SurModics 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 SurModics will offset losses from the drop in SurModics' long position.| Aurora Spine vs. Sonova Holding AG | Aurora Spine vs. Medtronic PLC | Aurora Spine vs. CONMED | Aurora Spine vs. Glaukos Corp |
| SurModics vs. Abbott Laboratories | SurModics vs. Medtronic PLC | SurModics vs. Edwards Lifesciences Corp | SurModics vs. ZimVie Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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