Correlation Between Edwards Lifesciences and ALLURION TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both Edwards Lifesciences and ALLURION TECHNOLOGIES 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 Edwards Lifesciences and ALLURION TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edwards Lifesciences Corp and ALLURION TECHNOLOGIES INC, you can compare the effects of market volatilities on Edwards Lifesciences and ALLURION TECHNOLOGIES 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 Edwards Lifesciences with a short position of ALLURION TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edwards Lifesciences and ALLURION TECHNOLOGIES.
Diversification Opportunities for Edwards Lifesciences and ALLURION TECHNOLOGIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edwards and ALLURION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edwards Lifesciences Corp and ALLURION TECHNOLOGIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLURION TECHNOLOGIES INC and Edwards Lifesciences 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 Edwards Lifesciences Corp are associated (or correlated) with ALLURION TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLURION TECHNOLOGIES INC has no effect on the direction of Edwards Lifesciences i.e., Edwards Lifesciences and ALLURION TECHNOLOGIES go up and down completely randomly.
Pair Corralation between Edwards Lifesciences and ALLURION TECHNOLOGIES
If you would invest 8,141 in Edwards Lifesciences Corp on September 19, 2024 and sell it today you would lose (729.00) from holding Edwards Lifesciences Corp or give up 8.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Edwards Lifesciences Corp vs. ALLURION TECHNOLOGIES INC
Performance |
| Timeline |
| Edwards Lifesciences Corp |
| ALLURION TECHNOLOGIES INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Edwards Lifesciences and ALLURION TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edwards Lifesciences and ALLURION TECHNOLOGIES
The main advantage of trading using opposite Edwards Lifesciences and ALLURION TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edwards Lifesciences position performs unexpectedly, ALLURION TECHNOLOGIES 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 ALLURION TECHNOLOGIES will offset losses from the drop in ALLURION TECHNOLOGIES's long position.| Edwards Lifesciences vs. Avita Medical | Edwards Lifesciences vs. Inogen Inc | Edwards Lifesciences vs. Apyx Medical |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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