Correlation Between Delcath Systems and SurModics
Can any of the company-specific risk be diversified away by investing in both Delcath Systems 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 Delcath Systems and SurModics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delcath Systems and SurModics, you can compare the effects of market volatilities on Delcath Systems 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 Delcath Systems with a short position of SurModics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delcath Systems and SurModics.
Diversification Opportunities for Delcath Systems and SurModics
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delcath and SurModics is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Delcath Systems and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics and Delcath Systems 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 Delcath Systems 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 Delcath Systems i.e., Delcath Systems and SurModics go up and down completely randomly.
Pair Corralation between Delcath Systems and SurModics
Given the investment horizon of 90 days Delcath Systems is expected to generate 5.07 times more return on investment than SurModics. However, Delcath Systems is 5.07 times more volatile than SurModics. It trades about 0.01 of its potential returns per unit of risk. SurModics is currently generating about 0.0 per unit of risk. If you would invest 1,064 in Delcath Systems on August 28, 2024 and sell it today you would lose (14.00) from holding Delcath Systems or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delcath Systems vs. SurModics
Performance |
| Timeline |
| Delcath Systems |
| SurModics |
Delcath Systems and SurModics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delcath Systems and SurModics
The main advantage of trading using opposite Delcath Systems and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delcath Systems 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.| Delcath Systems vs. Heartbeam | Delcath Systems vs. EUDA Health Holdings | Delcath Systems vs. Nutex Health | Delcath Systems vs. Healthcare Triangle |
| SurModics vs. LivaNova PLC | SurModics vs. Electromed | SurModics vs. Orthopediatrics Corp | SurModics vs. Neuropace |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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