Correlation Between Asensus Surgical and Stryker
Can any of the company-specific risk be diversified away by investing in both Asensus Surgical and Stryker 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 Asensus Surgical and Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asensus Surgical and Stryker, you can compare the effects of market volatilities on Asensus Surgical and Stryker 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 Asensus Surgical with a short position of Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asensus Surgical and Stryker.
Diversification Opportunities for Asensus Surgical and Stryker
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asensus and Stryker is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Asensus Surgical and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker and Asensus Surgical 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 Asensus Surgical are associated (or correlated) with Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of Asensus Surgical i.e., Asensus Surgical and Stryker go up and down completely randomly.
Pair Corralation between Asensus Surgical and Stryker
Given the investment horizon of 90 days Asensus Surgical is expected to under-perform the Stryker. In addition to that, Asensus Surgical is 6.19 times more volatile than Stryker. It trades about -0.03 of its total potential returns per unit of risk. Stryker is currently generating about 0.07 per unit of volatility. If you would invest 26,676 in Stryker on August 27, 2024 and sell it today you would earn a total of 11,809 from holding Stryker or generate 44.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.93% |
| Values | Daily Returns |
Asensus Surgical vs. Stryker
Performance |
| Timeline |
| Asensus Surgical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Stryker |
Asensus Surgical and Stryker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asensus Surgical and Stryker
The main advantage of trading using opposite Asensus Surgical and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asensus Surgical position performs unexpectedly, Stryker 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 Stryker will offset losses from the drop in Stryker's long position.| Asensus Surgical vs. Senseonics Holdings | Asensus Surgical vs. Bionano Genomics | Asensus Surgical vs. Jaguar Animal Health | Asensus Surgical vs. Foresight Autonomous Holdings |
| Stryker vs. Heartbeam | Stryker vs. EUDA Health Holdings | Stryker vs. Nutex Health | Stryker vs. Healthcare Triangle |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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