Correlation Between CONMED and ICU Medical
Can any of the company-specific risk be diversified away by investing in both CONMED and ICU Medical 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 CONMED and ICU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONMED and ICU Medical, you can compare the effects of market volatilities on CONMED and ICU Medical 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 CONMED with a short position of ICU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONMED and ICU Medical.
Diversification Opportunities for CONMED and ICU Medical
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CONMED and ICU is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CONMED and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical and CONMED 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 CONMED are associated (or correlated) with ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of CONMED i.e., CONMED and ICU Medical go up and down completely randomly.
Pair Corralation between CONMED and ICU Medical
Given the investment horizon of 90 days CONMED is expected to generate 8.23 times less return on investment than ICU Medical. But when comparing it to its historical volatility, CONMED is 1.23 times less risky than ICU Medical. It trades about 0.02 of its potential returns per unit of risk. ICU Medical is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 10,353 in ICU Medical on August 28, 2024 and sell it today you would earn a total of 6,428 from holding ICU Medical or generate 62.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONMED vs. ICU Medical
Performance |
| Timeline |
| CONMED |
| ICU Medical |
CONMED and ICU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONMED and ICU Medical
The main advantage of trading using opposite CONMED and ICU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONMED position performs unexpectedly, ICU Medical 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 ICU Medical will offset losses from the drop in ICU Medical's long position.| CONMED vs. Heartbeam | CONMED vs. EUDA Health Holdings | CONMED vs. Nutex Health | CONMED vs. Healthcare Triangle |
| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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