Correlation Between Edwards Lifesciences and SurModics
Can any of the company-specific risk be diversified away by investing in both Edwards Lifesciences 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 Edwards Lifesciences and SurModics 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 SurModics, you can compare the effects of market volatilities on Edwards Lifesciences 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 Edwards Lifesciences with a short position of SurModics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edwards Lifesciences and SurModics.
Diversification Opportunities for Edwards Lifesciences and SurModics
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Edwards and SurModics is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Edwards Lifesciences Corp and SurModics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SurModics 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 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 Edwards Lifesciences i.e., Edwards Lifesciences and SurModics go up and down completely randomly.
Pair Corralation between Edwards Lifesciences and SurModics
Allowing for the 90-day total investment horizon Edwards Lifesciences is expected to generate 1.03 times less return on investment than SurModics. In addition to that, Edwards Lifesciences is 1.82 times more volatile than SurModics. It trades about 0.16 of its total potential returns per unit of risk. SurModics is currently generating about 0.29 per unit of volatility. If you would invest 3,780 in SurModics on August 28, 2024 and sell it today you would earn a total of 178.00 from holding SurModics or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edwards Lifesciences Corp vs. SurModics
Performance |
| Timeline |
| Edwards Lifesciences Corp |
| SurModics |
Edwards Lifesciences and SurModics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edwards Lifesciences and SurModics
The main advantage of trading using opposite Edwards Lifesciences and SurModics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edwards Lifesciences 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.| Edwards Lifesciences vs. Medtronic PLC | Edwards Lifesciences vs. Abbott Laboratories | Edwards Lifesciences vs. Boston Scientific Corp | Edwards Lifesciences vs. Zimmer Biomet Holdings |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |