Correlation Between Establishment Labs and Surgalign Holdings
Can any of the company-specific risk be diversified away by investing in both Establishment Labs and Surgalign Holdings 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 Establishment Labs and Surgalign Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Establishment Labs Holdings and Surgalign Holdings, you can compare the effects of market volatilities on Establishment Labs and Surgalign Holdings 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 Establishment Labs with a short position of Surgalign Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Establishment Labs and Surgalign Holdings.
Diversification Opportunities for Establishment Labs and Surgalign Holdings
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Establishment and Surgalign is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Establishment Labs Holdings and Surgalign Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgalign Holdings and Establishment Labs 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 Establishment Labs Holdings are associated (or correlated) with Surgalign Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgalign Holdings has no effect on the direction of Establishment Labs i.e., Establishment Labs and Surgalign Holdings go up and down completely randomly.
Pair Corralation between Establishment Labs and Surgalign Holdings
If you would invest 4,476 in Establishment Labs Holdings on August 28, 2024 and sell it today you would earn a total of 79.00 from holding Establishment Labs Holdings or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Establishment Labs Holdings vs. Surgalign Holdings
Performance |
| Timeline |
| Establishment Labs |
| Surgalign Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Establishment Labs and Surgalign Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Establishment Labs and Surgalign Holdings
The main advantage of trading using opposite Establishment Labs and Surgalign Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Establishment Labs position performs unexpectedly, Surgalign Holdings 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 Surgalign Holdings will offset losses from the drop in Surgalign Holdings' long position.| Establishment Labs vs. Heartbeam | Establishment Labs vs. EUDA Health Holdings | Establishment Labs vs. Nutex Health | Establishment Labs vs. Healthcare Triangle |
| Surgalign Holdings vs. Paragon 28 | Surgalign Holdings vs. Orthofix Medical | Surgalign Holdings vs. Si Bone | Surgalign Holdings vs. Avanos Medical |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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