Correlation Between Glaukos Corp and LivaNova PLC
Can any of the company-specific risk be diversified away by investing in both Glaukos Corp and LivaNova PLC 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 Glaukos Corp and LivaNova PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glaukos Corp and LivaNova PLC, you can compare the effects of market volatilities on Glaukos Corp and LivaNova PLC 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 Glaukos Corp with a short position of LivaNova PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glaukos Corp and LivaNova PLC.
Diversification Opportunities for Glaukos Corp and LivaNova PLC
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Glaukos and LivaNova is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Glaukos Corp and LivaNova PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LivaNova PLC and Glaukos Corp 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 Glaukos Corp are associated (or correlated) with LivaNova PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LivaNova PLC has no effect on the direction of Glaukos Corp i.e., Glaukos Corp and LivaNova PLC go up and down completely randomly.
Pair Corralation between Glaukos Corp and LivaNova PLC
Given the investment horizon of 90 days Glaukos Corp is expected to generate 1.45 times more return on investment than LivaNova PLC. However, Glaukos Corp is 1.45 times more volatile than LivaNova PLC. It trades about 0.13 of its potential returns per unit of risk. LivaNova PLC is currently generating about -0.04 per unit of risk. If you would invest 12,994 in Glaukos Corp on August 24, 2024 and sell it today you would earn a total of 1,089 from holding Glaukos Corp or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glaukos Corp vs. LivaNova PLC
Performance |
| Timeline |
| Glaukos Corp |
| LivaNova PLC |
Glaukos Corp and LivaNova PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glaukos Corp and LivaNova PLC
The main advantage of trading using opposite Glaukos Corp and LivaNova PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glaukos Corp position performs unexpectedly, LivaNova PLC 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 LivaNova PLC will offset losses from the drop in LivaNova PLC's long position.| Glaukos Corp vs. Orthopediatrics Corp | Glaukos Corp vs. CONMED | Glaukos Corp vs. LivaNova PLC | Glaukos Corp vs. Paragon 28 |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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